E-commerce giant Amazon has just announced that it will be investing $2 billion in India in order to reinforce its burgeoning growth in the country. This comes a day after Flipkart, a local e-commerce giant, announced it had obtained $1 billion in funding.
“After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations,” said CEO and founder of Amazon.com, Jeff Bezos.
“We see huge potential in the Indian economy and for the growth of e-commerce in India. With this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India,” he said. “At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales.”
Since its launch in June of the previous year, Amazon has been experiencing rapid growth in India. It currently hosts over 8,500 merchants and sells more than 17 million products. It has set up a series of warehouses all over the country, with five more to be opened in Delhi, Ahmedabad, and Jaipur.
Amazon’s efforts have been paying off. In terms of sales, it is quickly closing in on Snapdeal, the second largest online retailer in India. So far this year, both companies sold around $600 million worth of items. They hope to achieve $1 billion in sales this fiscal year.
Flipkart remains in the number one spot, however. Last fiscal year, it reached Amazon’s target of $1 billion in sales.
Via [Economic Times]