Amazon spends $296m to overtake Flipkart
In a bid to knock online marketplace Flipkart from its leadership position in India, eCommerce giant Amazon has injected Rs2010 crore (US$296 million) into its Indian unit.
Regulatory filings show that the move takes Amazon’s total capital investment in India to more than Rs7000 crore in the past one year.
“We will invest what it takes to become the customers’ preferred choice in India, and are encouraged that we are India’s largest and fastest-growing eCommerce marketplace,” says an Amazon India spokeswoman.
A report in The Economic Times says Amazon is estimated to have spent more than Rs1000 crore last month to woo customers with special offers and discounts for the festive season, and is losing about Rs600 crore every month.
Amazon entered India three years ago, introducing some of its global programs this year including its Prime service, which offers quicker deliveries and early-access deals.
Last week, it announced Prime Video services for India offering Hollywood and other international movies and TV shows – plus launching nine original Indian shows, making it the largest Indian original line-up on an OTT (over-the-top) platform.
Earlier this month Amazon announced the launch in India of its global program for start-up products, Launchpad, and in October it launched Global Store, offering products from its US online store that are not available in India.
Meanwhile, Flipkart’s Sachin Bansal is seeking government help in the battle against Amazon.