Amazon investing $2 billion more in India as online retail booms

The announcement comes a day after an Indian retailer got $1 billion in funding

Amazon.com is investing US$2 billion more in India, which is witnessing an online retail boom.

The online retailer has been expanding in India, and earlier this week said it was setting up five new fulfillment centers in the country, which will double its total storage capacity to over half a million square feet (over 46,500 square meters).

The investment announcement comes a day after a top Indian online retailer, Flipkart Internet, said it had raised $1 billion in new funding.

India's online retail spending is forecast to reach $16 billion by 2018, an eightfold increase from 2013, according to Forrester Research. "Mobile Internet access will be a catalyst for the growth of online retail in India," wrote Forrester analyst Jitender Miglani in March.

India will be Amazon's fastest country to reach one billion dollars in gross sales if current growth rates continue, Amazon said Wednesday.

The company did not say how or over what period it will make the investment.

"We don't comment on any future plans," a company spokeswoman said. "We are committed to aggressively investing in growing the business and relentlessly focus on raising the bar for online shopping experience in India."

As a result of Indian government restrictions on foreign investment in online retail in India, Amazon set up a marketplace last year, Amazon.in, which offers sales and order fulfillment services to Indian retailers, but does not sell directly.

The company also operates the Junglee.com website, a search and comparison site for Indian shoppers who can browse for a variety of retailers, including offline sellers and vendors of second-hand goods.

The Amazon marketplace offers over 17 million products from thousands of small and medium-size businesses.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesFlipkart Internetamazon.come-commerceinvestmentsinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?