Amazon invests ₹2,600 crore in India unit

Source: http://www.fibre2fashion.com

American e-retailer Amazon is set to invest ₹2,600 crore in its Indian unit, Amazon Seller Services, to compete with the Indian e-commerce website Flipkart that recently entered into a mega deal worth $16 billion with Walmart. The board of directors of the India unit have already passed the resolution for the investment at a meeting held on April 26.

The investment has been made by Amazon.Com Incs and Amazon Corporate Holdings, according to filings to corporate affairs ministry. Amazon Seller Services had also received ₹1,950 crore from its American parent company in January this year.

Amazon will continue to invest in the infrastructure and the necessary technology to grow its eco-system in order to make e-retail a habit for people in India, said media reports quoting an Amazon India spokesperson.

Jeff Bezos, the founder of Amazon, plans to infuse funds to the tune of $5 billion in the Indian market.

Amazon CFO Brian Olsavsky said that the company sees great progress in India with regards to seller and customers and hence it will keep investing in its India business. The company is continuing to pump money in its India unit, despite registering a $622 million loss in its international business in Q1 2018.

The company is also investing towards strengthening logistics, increasing its assortment of products and building warehouses as well as in marketing and promotions. (KD)



Categories: Asia, Business, India, Retail, USA

Tags: , , , ,

%d bloggers like this: