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To compete with Flipkart, Amazon invests Rs. 1660 crore in India operations



To compete with Flipkart, Amazon invests Rs. 1660 crore in India operations

Amazon has doubled down on its commitment to the Indian market by infusing Rs 1,660 crore into its India entity for the second time within a few months. This follows a previous investment of Rs 830 crore in February, demonstrating Amazon’s confidence in the country’s potential. The move coincides with Walmart’s substantial investment of about $600 million in Flipkart, highlighting the fierce competition in the Indian e-commerce landscape.

Additionally, SoftBank-backed Meesho has disclosed its latest fundraising efforts, securing a significant $275 million. The escalating competition among major players in the Indian e-commerce space underscores the growing importance of strategic investments and financial backing.

As per the information Indian e-commerce sector is projected to reach a staggering $300 billion by 2030, signaling immense growth opportunities. Amazon CEO Andy Jassy reaffirmed the company’s commitment to India, stating that Amazon has invested $11 billion to date and intends to inject another $15 billion, bringing the total investment to $26 billion.

In response to intensifying competition, Amazon India recently launched Bazaar, offering unbranded products priced under Rs 600, to compete with rivals like Meesho and Ajio. Meesho, on the other hand, bolstered its leadership team by appointing Surojit Chatterjee as an independent director.

Meanwhile, Amazon Web Services (AWS) CEO Adam Selipsky’s departure was announced, with Jassy acknowledging Selipsky’s significant contributions. Despite this transition, Amazon continues to exhibit strong financial performance, with a 13% increase in net sales to $143.3 billion in the March quarter and a net income of $10.4 billion. Amidst these developments, Meesho’s successful fundraising further underscores the dynamism and competitiveness of the Indian e-commerce market.