American e-commerce giant Amazon has invested Rs 2,010 crores in India this week. This underscores their commitment to becoming the largest e-tailer in the Indian subcontinent. This last cash infusion takes Amazons total invest in the last 12 months to Rs 7,000 crores.
An Amazon spokesman confirmed the news and reiterated their commitment to becoming the largest e-tailer in India. Their target for the coming year is to be the most preferred e-commerce website. They believe that they will soon be bigger than all of their competitors put together due to the fact that they are India’s fastest growing e-commerce player. In an industry with very little or no growth, Amazon India has continued to deliver a growth of a 100%.
The Seattle headquartered company, which was founded by Jeff Bezos aims to make online shopping a way of life. They have successfully done it in the US and in Europe and are now trying to crack the model in India. Amazon is confident about this as their business models are profitable around the World. This has made Jeff Bezos the 4th richest person in the World.
One thing which separates Amazon from its peers is its focus on logistics. It is investing heavily in logistics in order to reach every pin code the country has. It has 20 centres across the country for this purpose, but with this new investment, one can expect more centres popping up across the length and breadth of the country.
Amazon is on its way to make almost a $1 billion in losses, but that is not Amazon would call them. They claim it is an investment in expanding the e-commerce market and not a loss. With a larger footprint, they are confident about cementing their position of a market leader in India. Whether that happens this year or in the year after that is something which we all will have to wait and see.