At a time when the Indian origin eCommerce players including Flipkart and Snapdeal are struggling in order to raise new round of funding, US-based online retailer Amazon has invested another $200 million (around 1,350 cr) in its India unit. This new investment will surely catalyse company’s monopoly and impetus it gained over the past one and half years.
The recently made investment in Amazon Seller Services takes the total capital investment into the India unit in mere one year to about 8,618 cr. This regular infusion of funds has given Amazon a cutting-edge advantage over its peers. The company is high on growth and has given a tough time to its rivals who are slashing budgets as they struggle to make feasible revenue.
The US-based eCommerce major will complete its 3 good years in the country. In this tenure, the company has nabbed a noteworthy market pie compared to its Indian counterparts. The company has recently surpassed its domestic rival Snapdeal in shipments and volume market share.
After losing the grip in China, the company shifted its focus to India which is, at the present, the fastest growing economy in the world. Amazon also expects India to take over countries like the UK, Japan and Germany to become its second largest overseas market in the years to come.
Amazon Chief Executive Jeff Bezos at the Code/Media conference held in California said, that the company could have done much more local market customisation in India than it did in China.
Bezos also said that there is a wide difference in Indian and Chinese markets. This was a dig at investors who have infused substantial capital into Amazon’s domestic opponents.
“I think some of the investors in India in the early days thought that India might be a replay of China and they have found out that it hasn't gone that way,” he added.