Online retail major Amazon, headquartered in Seattle, has crossed $2 billion in its investments in India, after it infused another Rs 1,680 crore in its main local unit
Amazon Seller Services last month.
After this round, its total capital invested in India stands at over Rs13,800 crore ($2.1billion).
This makes
Amazon the second largest global investor in India's digital economy, next only to
SoftBank Group. The Japanese group has so far invested about $4 billion in its India operations.
"There are few areas
Amazon India is targeting now - they want to grow big in fashion. The focus is also on growing Prime membership for next six months and keeping the user engaged. Part of the infusion will be directed to Prime content development,"
Satish Meena, senior forecast analyst at
Forrester Research, told
ET.
Some part of this money could also be used to strengthen the network before the upcoming festive season, which sees the biggest sales in India’s e-commerce space.
"They are gearing up for Diwali and the usual investment in logistics and warehousing will continue. This year, the competition is only from
Flipkart," said Meena.
Amazon would continue to infuse capital into India in a six to nine month interval for the next two to three years, so that it can be ahead of the rivals.
Amazon’s biggest rival in India, the Flipkart group, has recently raised a round of $1.4 billion funding, led by Chinese internet conglomerate
Tencent and US technology corporations eBay and
Microsoft. This round took Flipkart’s total capital raised till date to a whopping $4.6 billion.