Amazon invests over Rs 4,400 crore to strengthen India presence
today Oct 30, 2019
The US-based Amazon has invested over Rs 4,400 crore ($621 million) to strengthen its business units in India despite incurring heavy losses in the country.
Amazon sees huge potential in the Indian market which is why it has been investing heavily and ready to face short term losses for long term gains.
Amazon Corporate Holdings along with Amazon.com.incs Ltd has pumped in Rs 3,400 crore in Amazon Seller Services, Rs 900 crore in Amazon Pay and Rs 172.5 crore in Amazon Retail India.
Amazon Seller Services is the company’s marketplace, while Amazon Pay and Retail deal with digital payments and food services respectively.
The long-term plan seems to be working as the company’s e-commerce business is witnessing strong sales resulting in a decrease in losses. For the fiscal year 2019, Amazon Seller Services managed to decrease its losses by 9.5 percent to Rs 5,685 crore as against Rs 6,287.9 crore in the 2018 financial year.
With heavy investments in India, Amazon has successfully grabbed a large chunk of the Indian e-commerce space even though it entered seven years after its main rival Flipkart in 2014.
Amazon founder Jeff Bezos had committed investment worth USD 5 billion in the Indian market, a majority of which has been already invested in the country.
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