E-commerce

Amazon Gears Up for the Great India E-commerce War as Walmart Buys Flipkart

The Seattle-based e-commerce company has invested about INR 2700 crore in its Indian arm
Amazon Gears Up for the Great India E-commerce War as Walmart Buys Flipkart
Image credit: Eric Broder Van Dyke | Shutterstock
Entrepreneur Staff
Senior Correspondent, Entrepreneur India
3 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Looks like the world’s largest online retailer - Amazon has rolled up its sleeves to deal with competition in the USD 33 billion Indian e-commerce market as reports suggest the giant has pumped in a whopping amount of INR 2700 crore in its India's arm.

Including the fresh rounds of investments, as of date, Amazon has invested close to about USD 4 billion in the Indian market. In 2016, Jeff Bezos – the CEO of Amazon committed USD 5m billion investment to India as the entrepreneur sees a huge potential in the local economy.

The giant has heavily invested to build infrastructure, technology, warehousing, logistics, along with discounting product and increasing the reach of Amazon Prime. In the past, both Bezos and Amazon India’s head Amit Agarwal have asserted that how important is Indian market for the international marketplace and every opportunity will be seized to win the great Indian e-commerce war.

While on the other note, the investment announcement also comes in the backdrop of Flipkart’s acquisition by Walmart. Flipkart is India’s largest e-commerce portal and post the acquisition, the company is expected to pump in around USD 2 billion in the Indian market.

Food for All

With the addition to the above-mentioned investment, Amazon has also pumped around INR 100 crore in its Indian food retail arm.

Similarly, major Indian unicorn companies have forayed into the online grocery business.

Flipkart through Flipkart Supermart is currently delivering groceries in Bangalore and the company is planning to expand its services to another five odd cities, which includes Hyderabad, Mumbai, Pune, Delhi and Chennai, by end of the year.

Both the e-retailer giants are likely to face completion from not just hyperlocal delivery services platforms like BigBasket but also via niche startups such as Milk Basket, FreshtoHome and VeggieKart.

Meanwhile, news reports also suggest that Amazon in is talks with Kishore Biyani's Future Retail to buy about 10 per cent of stake in the company.

The Other Gang

The tug of war is not just between Amazon and Flipkart. Both the e-commerce portals are likely to face completion for Swedish company Ikea in the home furnishing segment in India.

Rumours have it that the company registered a business of INR 1 crore during its launch day in Hyderabad earlier this week.

IKEA also has a microsite up and running for India customers to browse to the company’s catalogue. However, reports suggest that Ikea will also launch its e-commerce portal early next year for the country.

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What Does Amazon & Flipkart's Entry Mean For the Indian E-grocery Segment?