Amazon to pour $2B into its Indian retail business

3 Comments

Amazon(s amzn) 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?

3 Comments

maapithas

indian market has great potential and flourishing and in the light of the present government’s decision to open up avemues for FDI s,it makes a sensible decision taken by Amazon

ambrosia

I can see Amazon’s offer to buy Flipkart coming not long into the future !

hotrodder98

Way to go.

I can’t think of a better way to waste money than to think you’re going to overtake established Indian business. Between Indian consumers’ ethnocentric business model and incredible institutional impediments to outside companies, only soaking that pile of money in gasoline and tossing a match on it would burn up that investment faster.

The only way for foreign firms to get wholesale acceptance of a foreign company is to sell it out to new Indian owners. And I don’t think that is the kind of disruption that Bezos & Company is going to buy into.

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