US-based e-commerce giant Amazon plans to invest an additional $3 billion in India, which is emerging as a critical area of growth, and to compete with local rivals Flipkart and Snapdeal.
Amazon founder and CEO Jeff Bezos announced on Wednesday, “Amazon will invest $3 billion more in India. This is in addition to the $2 billion announced in 2014,”. With this announcement, Ammazon made total investment in the country to over $5 billion.
“We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy,” Bezos said at the annual gala of U.S. India Business Council (USIBC) which was attended by Prime Minister Narendra Modi.
In July 2014, Amazon pumped in $2 billion in its India operations which is said to be exhausted over the time. That announcement was seen as an open challenge to local rival Flipkart, India’s largest e-commerce firm, which had announced just one day earlier that it raised $1 billion from Tiger Global, Naspers and other investors.
Apart from its strengthening it Indian e-commerce business, Amazon will also utilize the fresh $3 billion to invest in building out its web services unit in India.
“We’ve seen tremendous growth since our launch three years ago. Jeff captured it best when he said Amazon India has surpassed our most ambitious plans. As we’ve said before, based on the momentum we’ve seen so far and the opportunity ahead, India can be our biggest market after the US over the long term,” Bezos said after receiving USIBC’s Global Leadership Awards.
At the event, Star India, a subsidiary of 21st Century Fox, also said it will invest an additional $5 billion over the next three years.
“In less than two years, about 20 per cent of USIBC member companies have already invested $28 billion India,” USIBC chairman John Chambers announced in the event.