Looks like Amazon wants to be the top dog in India. In an effort to take on Flipkart, its biggest rival in the country, the American-based company has invested Rs 2,010 crore in its Indian operations. According to regulatory filings, the investment was made in November and is the largest to date by Amazon. It brings the total investment in Amazon Seller Services to Rs 7,000 crore in the past 12 months.
In an interview with The Economic Times, a representative for Amazon India said that the company will invest as much as it takes in order to become customers’ preferred choice in India. Amazon really is trying hard to take business away from Flipkart and other competitors and has reportedly lost more than Rs 1,000 crore during the festive season in October by offering customers special offers and discounts.
The company has also introduced quite a few new services in the country this year. Amazon Prime, which offers customers guaranteed delivery in a day or two and early access to great deals, went live in July. About a week ago, Amazon launched the Prime Video service that goes up against Netflix. It has also recently announced the Amazon Now service– available in Mumbai in Delhi — that lets you buy groceries from various local stores and offers a two-hour delivery.
Amazon is clearly gunning for Flipkart, which will now have to step up its game in response. According to Satish Meena, an analyst with Forrester Research, Flipkart was investing big in 2015 but has cut down its spending this year. If it wants to counter Amazon, the company will now have to raise more capital from investors.
What do you think about Amazon’s recent investment? Will it help the company to become the biggest online retailer in the country? Let us know your thoughts down below.