Amazon infuses $190M into India operations

Sending alarming bells to competitors, Amazon, the US-based global giant in e-commerce segment, has invested $190 million in its Indian arm Amazon Seller Services. With the previous investment of $177 million, the total amount being spent on India operations shoot up to $460 million.

Amazon is upbeat on Indian markets as the country offers growth potential for the company, which is investing in technology, infrastructure and logistics to offer better services to customers.

With Diwali (festival of lights) around the corner, Amazon is gearing up to increase sales volume on its platform. Diwali is the main season for shopping in India. Amazon aims to improve sales by manifolds this festive season.

Recently, Amazon has launched eight new fulfillment centers (FCs) in India. Amazon has expanded its footprint across 100 satellite towns and Tier-I cities in India.

The funding strategy includes raising money by allocating equity shares to US parent company, according to a filing to Registrar of Companies (RoC). As part of its efforts to attract sellers to join e-Commerce platform, Amazon Seller Service recently unveiled Amazon Service Providers Network (ASPN), which acts as a network of third-party service providers.

With the launch of eight new fulfillment centers (FCs), the total number of FCs increased to 21 in 10 states in India. These 21 FCs have a total area of 2mn sqft with a storage capacity of over 5mn cubic feet. Amazon Service Providers Network enables sellers to easily complete online selling. It also helps sellers and manufacturers enhancing their online strategies as well.

However, Amazon didn't elaborate on how it would spend the investment. But, it's learned that Amazon would enhance its network by increasing the number of warehouses and data centers. It'll also strengthen the online platform and marketplace to offer better services to online shoppers, sellers and manufacturers as well.

Billionaire Jeff Bezos, founder and chief executive of Amazon, had earlier said that his would invest $2bn in India. Bezos made this announcement soon after Flipkart raised $1bn from investors. Amazon is confident of increasing sales volume by manifold as it received more than expected response from buyers, small and medium business and manufacturers.

Buyers from small villages and towns are encouraged to purchase online. This will also help budding entrepreneurs in villages to showcase their products on Amazon platform. The expanded network of Amazon covering 100 satellite towns and Tier-I cities in India is bringing many weavers, artisans, and rural folk to showcase their products globally.

Amazon platform is enabling weavers, artisans, handicrafts manufacturers to market their products online. The fulfillment centers have been equipped with modern machinery and infrastructure support to do the heavy lifting for sellers of all sizes. 

Amazon is anticipating that thousands of sellers will make use of its infrastructure and other support services. Amazon aims to ensure quality delivery in even remote places in the country.