Home Business Entrepreneurship Amazon India Raises Fresh Capital Worth Rs. 2,010 Crores Via Core Firm

Amazon India Raises Fresh Capital Worth Rs. 2,010 Crores Via Core Firm

US-based Amazon Inc. has recently invested as much as Rs. 2,010 crores in its India segment were henceforth settling down to one of the biggest capital infusion in a conglomerate through its core firm till date. As per the developments, it has bid to topple the market leader Flipkart Inc. from its existing position as the Indian-based e-commerce giants is considerably world’s fastest growing market in online retail section.

amazon-india-raises-2010-crores-to-woo-customers-in-festive-month
Amazon Inc. CEO & Founder Jeff Bezos

The latest fundraising event held in November 2016, took Amazon India at a whopping net budget of Rs. 7,000 crores in the past 12 months of its capital investments. As per the authoritative regulatory bodies, the US-oriented e-commerce giants operating in India, the marketplace is said to have lost near about Rs. 1,000 crores so as to woo customers through various advertisements and marketing strategies which include a series of offers and discounts during the festive season in October.

The owner of Amazon Inc., Jeff Bezos stated in Economic Times that the online marketplace is losing almost Rs. 600 crores every month behind the promotion and attracting customers in India some or the other way around. Till date, it has invested Rs. 11,000 crores approximately in Amazon India with the number of the amount increasing by each month. The budget of 600 crores in during the non-festive months and in festive months such as September-October, October-November, December, etc. it rises to near about Rs. 1,000 to 2,000 crores so that customers purchase items eventually giving tough competition to India-based Flipkart.

According to Spokesperson of Amazon India, We will invest what it takes to become the customers’ preferred choice in India and are encouraged that we are India’s largest and fastest-growing ecommerce marketplace. In an industry reportedly flat or negative, Amazon India has continued to show remarkable growth of over 100% this year.

The fundraising event was followed by its biggest rival Flipkart ramping up to burn cash over target audiences as well as preferred higher level playing against foreign rivals. In the recent past, Flipkart owner Mr Bansal approached Centre and PM Narendra Modi to regulate the norms of Make in India concept in domestic firms subsequently paying more attention along with marking high rated investments through foreign sources.

Amazon India has its own logistics unit in various regions which include wholesale payments mode and commerce sections. The funds will be used separately in both the segments so as to empower it in different ways. Earlier, the online retail giants spent oodles of amount in building warehouses along with infrastructures but the switch to use the raised funds to woo customers as well as consumer acquisition has cent percent helped the firm gain acknowledgement and reliability among Indians.

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