Ecommerce giant Amazon India infused a record $306 million funding to outrun its rival, Flipkart. The move is part of Amazon’s strategy to beat Flipkart in terms of total market share and number of orders.
The latest investment was made by Amazon Inc along with its Singapore-based subsidiary, Amazon Corporate Holdings
“We remain committed to our India business with a long-term perspective to make e-commerce a habit for Indian customers and to invest in the necessary technology and infrastructure to grow the entire ecosystem. We are delighted and humbled by the trust from our customers, to lead e-commerce in India,” said Amazon India’s official statement regarding the fresh influx of cash.
Amazon has been raising massive capital through frequent funding rounds in its Indian arm to overtake Flipkart.
According to reports, the Jeff Bezos-led company suffered a loss of $936 million due to the aggressive investment in India.
However, Amazon Worldwide Consumer CEO Jeff Wilke said India is the company’s fastest growing market.
Amazon generates revenue in India through commissions, shipping fees and advertisements. The company is planning to expand its seller community which already has over 250,000 registered sellers this year.
Flipkart is currently the leading ecommerce platform in India with an overall market share of about 60%.
But according to ecommerce experts, if Amazon continues its funding spree along with aggressive marketing strategies it can easily outrun Flipkart by the end of this year.