Global e-commerce player, Amazon today invested an enormous amount of Rs. 1,237 crore into its Amazon Seller Service, making it Amazon’s biggest investment to be pumped into its Indian flagship operations since its entry in 2013.
With this investment, the total sum of investment in Amazon Seller Services has come to around Rs. 3,000 crore in just a time-span of 10 months. Fiver months before, Amazon had already invested Rs 1,155 crore in Amazon Seller Services.
In a filing with the Registrar of Companies (RoC) last month, Amazon Seller had revealed that it is raising money through allotment of equity shares to its parent company in United States.
India is one of the fastest-growing markets for Amazon. It is being speculated that the company will be using funds to expand its network of warehouses and data centers to give tough competition to local players.
Recently, Amazon opened its 21st fulfillment center in India, on the outskirts of Pune. The new warehouse has an area of 55,000 sq. ft. Its e-commerce business in India is worth at least $2 billion in gross merchandise value.
The Indian e-commerce market is growing at an immense pace and all the three top companies in the market – Flipkart, Snapdeal and Amazon are trying hard to capture larger market share and to be at the pole position.
With the festive season coming, these companies will be offering heavy discounts and lucrative deals to attract users. To ensure everything works smoothly, the companies are investing in technology, especially mobile infrastructure and logistic services.
Last year, Amazon’s founder and CEO, Jeff Bezos had announced to invest $2 billion in Amazon India so that the team can “think big, innovate, and raise the bar for customers in India.”
Earlier, Flipkart raised around $700 million from Steadview Capital and other existing investors, at a valuation of $15 billion. On the other hand, Snapdeal has also raised $500 million from Alibaba and Foxconn couple of months ago, at a valuation of $5 billion.