With the growing competition from Flipkart, Amazon investing Rs. 2010 crores more into the business. As per Economic Times, the capital infusion was made by Amazon Seller Services Pvt Ltd until now.
As per reports, Amazon is losing Rs. 600 crores a month and it might burn $1 billion during its fight with Flipkart and other resellers. The sources mentioned that the Amazon investing $296 million more in Indian unit news put Flipkart under pressure and raise funds.
There are rumours mentioning that Flipkart is under talks with Walmart for equity partnership. But, no funding has been announced yet and there are talks that the negotiation might have been closed. Flipkart might also be in talks with Goldman Sachs for a new fundraiser.
Amazon has tried to venture into other places like fashion, home beauty services business and much more. Last year in October, it also can Indian customers access to the US website.
Recently, it also started prime membership through which people can watch different shows and movies online.
According to VCCircle, Amazon has also leased 30,000 sq ft office in Mumbai recently. The facility will have marketing, sales, and regional seller services, teams. The US-based consultancy firm JLL helped Amazon on the leased transaction.
On the contrary, Flipkart has also agreed to lease 3 million sq ft office in Bangalore from the realty firm Embassy Group. The rent of the office will be Rs. 300 crores annually. Amazon received data from comScore data which showed that Amazon was the most visited website in October last year as compared to Flipkart.
Around a year ago, Jabong was the most visited website followed by Flipkart, Snapdeal, and Amazon. When Amazon scrapped the deal to buy Jabong, the website lost its ranking as well.
The reports also mentioned that the e-commerce website would be buying 26% of Westland Ltd. It is a subsidiary of Trent Ltd a part of TATA’s group. It is best known as the publisher of Indian authors like Ashwin Sanghi and Amish Tripathi.