Amazon has pumped in a whooping Rs. 1,237 crores into its India-based Seller Services. This move is recorded as its biggest investment in India since the company began operations in the country in 2013.
In June 2014, Amazon’s CEO Jeff Bezos had said that the company would invest $ 2 billion in its India operations. Citing the booming growth of the ecommerce sector in India, Bezos had said during the announcement, “We've never seen anything like this, after our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations.”
With this round of financing, the value of Amazon Seller Services in India stands at Rs. 3,000 crores. Amazon had put in close to Rs. 1,155 crores in Seller Services nearly five months back. The fresh bout of finances have been raised through equity shares allotted to its US based parent company, it said in a filing with the Registrar of Companies (RoC).
The funds will be used in mobile, infrastructure and logistics, the company said. “We are very excited by our growth and continue to invest in technology, especially mobile, infrastructure and logistics to support seller capability in order to deliver value to our customers,” stated a company spokesperson.
Amazon is taking measured steps to consolidating its position in India, feel experts. It does not want to repeat the China experience, where Alibaba is ruling the roost.
“It is clear that after having lost China to Alibaba, Amazon doesn't want to take any chance in India and does not want to leave the pole position here,” feels Harminder Sahni founder, Wazir Advisors.
The company announced the opening of its twenty first fulfilment centre in India in Pune. The centre is said to measure close to 55,000 square feet.
Amazon has its work cut out with the competition reaching massive proportions. With its closest contenders Flipkart and Snapdeal, Amazon is attempting to fight its way to the top rung. All these efforts will surely contribute to the growth of Indian ecommerce, and the economy as a whole.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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