Amazon invests USD 5 bln to be top ecommerce provider in India

Tuesday 18 April 2017 09:27 CET | News

Amazon is making a USD 5 billion investment to became the top ecommerce site in India.

According to new data from data intelligence firm 7Park Data provided to several media outlets, Flipkart captures 30.7% mobile market share, versus 30.3% for Amazon.

Amazon’s traffic grew 46% between the Q1s of 2016 and 2017, while Flipkart traffic declined approximately 11% during the same period. Amazon customers also spend more time on the app than Flipkart customers.

As noted by Quartz India, Amazon in 2016 passed Flipkart in terms of the share of customers with the app installed. Amazon is also better at turning browsers into buyers, according to the data.

In 2016, reports surfaced that Amazon will invest an additional USD 3 billion in its India operations, which is on top of USD 2 billion already invested. That means the company is putting USD 5 billion toward its India business.

That investment includes Prime shipping, which launched in July 2016. Video is also one of Amazon’s top priorities in India, as the company plans to spend around USD 300 million to fund original movies and series there.

Flipkart landed the biggest funding round in its history, a USD 1.4 billion investment from Microsoft, Tencent and eBay. Reports indicate a possible merger between Flipkart and Snapdeal, the third most popular online retailer in India, according to the 7Park information.

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Keywords: Amazon, ecommerce, India, investment, Flipkart
Categories: Payments & Commerce | Ecommerce
Countries: World
This article is part of category

Payments & Commerce