Cash boost for Amazon India
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Amazon India has received a massive $189 million cash injection from its US parent.
It marks the biggest capital inflow into Amazon Seller Services in India since the brand made its debut in the nation in 2013.
Five months ago the parent invested a $177 million taking the total to $460 million.
“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,” an Amazon spokesman said.
Amazon founder Jeff Bezos is on record saying he was prepared to invest up to $2 billion into Amazon India because he is confident about the eCommerce giant’s future prospects in the fast-developing market.
The company now has 21 fulfilment centres, the newest near Pune City boasting 55,000 sqft.
Rival Flipkart plans to raise $1 billion from investors, following a $700 million funding round in July. And Snapdeal reportedly raised $500 million in collaboration with Alibaba.
Questions & Answers
Q.What is the total amount Amazon's parent company has invested in Amazon Seller Services in India to date?
What is the total amount Amazon's parent company has invested in Amazon Seller Services in India to date?
Including the recent $189 million cash injection, the parent company has now invested a total of $460 million into Amazon Seller Services in India. This figure includes a previous $177 million investment made five months ago.
Q.What areas does Amazon India plan to invest in with this new capital?
What areas does Amazon India plan to invest in with this new capital?
Amazon India intends to invest in technology, particularly mobile, as well as infrastructure and logistics. These investments aim to support seller capability and deliver value to their customers in the region.
Q.How does Amazon's investment in India compare to its competitors in the market?
How does Amazon's investment in India compare to its competitors in the market?
Amazon's founder Jeff Bezos has committed to investing up to $2 billion in Amazon India. Rival Flipkart plans to raise $1 billion, following a $700 million funding round, while Snapdeal reportedly raised $500 million.