Amazon Invests $2 Billion in India to Challenge Flipkart




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Amazon.com Inc., the world’s largest online retailer, announced plans to invest $2 billion in its Indian just hours after local rival Flipkart Online Services Pvt. secured $1 billion from investors. The spending will support Amazon’s growth India on pace to become the fastest to reach $1 billion of gross sales, the company said in an e-mailed statement today. Amazon and Flipkart are building their arsenals to gain a greater share of India’s e-commerce sales, which CLSA Asia Pacific Markets projects will grow sevenfold to $22 billion by 2018. India has of the youngest online populations access to the Internet surging as more consumers gain broadband connections and adoption grows faster than China, spurred by the availability of cheap devices. “We see huge potential in the Indian economy and for the growth of e-commerce in India,” Amazon founder and Chief Officer Jeff Bezos said in the statement. “ this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for in India.” Flipkart yesterday raised $1 billion from investors including Tiger Global Management LLC, South ’s Naspers Ltd. (NPN), Singapore sovereign wealth GIC Pte and Russian billionaire Yuri Milner’s DST Global.

[eap_ad_1] The investment is the most raised in India’s e-commerce industry, according to data compiled by Bloomberg. The money would help Flipkart solidify its place as the largest e-commerce site in India and hold off Amazon and E-Bay-backed Snapdeal.com. Flipkart Applications In , DST Global led a $210 million fundraising for Flipkart and the Indian company bought clothing site Myntra.com to strengthen its position against Amazon. Flipkart plans to use the latest funds to acquire mobile application companies and invest in , Chief Officer Sachin Bansal said in a conference call yesterday. “Using big data for creating better experiences for the is a key space and we are going to focus on ,” Bansal said. Flipkart says it has 22 million registered users and delivers 5 million shipments a month, according to a company statement. Amazon entered the Indian in June 2013, and now sells over 17 million products from smartphones to furniture according to a company statement. The company yesterday announced plans to five new warehouses across the country to facilitate delivery. (Bloomberg)

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