Amazon trumps Flipkart; announces $2 billion investment in India
Amazon has said it will invest an additional $2 billion in India, a market that Founder and CEO Jeff Bezos says is poised to be Amazon’s fastest growing market
Just a day after Flipkart announced that it has received a new round of investments worth $1 billion, e-retail heavyweight Amazon has said that it will invest an additional $2 billion to support its growth and expansion in the Indian market.
Since its launch in 2013, Amazon’s marketplace claims to be India’s largest store with over 17 million products.
“After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations,” said Jeff Bezos, Founder and CEO of Amazon.com. “We see huge potential in the Indian economy and for the growth of e-commerce in India. At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales.”
Amazon has not seen much success in penetrating the Chinese market, which is dominated by the likes of Alibaba.com. As per Amazon’s Q2 2014 earnings report earlier this month, its sales in North America had increased by just 26 per cent as compared to a 30 per cent growth in the comparable period in 2013.
On the other hand, the Indian e-commerce market is pegged to grow to $8.1 billion by 2016 according to analysts and hence, it is no surprise that the likes of Flipkart and Amazon want to capture what is probably the only market in the world, apart from China, seeing such high-speed growth.
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