Amazon plans to invest $2 billion into its e-commerce business in India.
“We see huge potential in the Indian economy and for the growth of e-commerce in India,” Amazon CEO Jeff Bezos said in a statement that also claimed that Amazon’s Indian arm, launched in June 2013, is now the country’s largest store.
Maybe, but if so, it faces stiff competition. Amazon’s news came a day after Flipkart, another power in India e-commerce, announced $1 billion in new funding from Tiger Global, Yuri Milner’s DST Global group, Accel Partners, ICONIQ Capital, Morgan Stanley Investment Management and Sofina.
Flipkart was founded in 2007 by two former Amazon executives Sachin Bansal and Binny Bansal, initially as an online bookseller. The firm has since branched out to offer all manner of goods — it claims 22 million registered users and 3,000 affiliated merchants. Sound familiar?