According to CNBC TV-18, Amazon is responding to Walmart’s majority purchase of Flipkart, a major Indian e-commerce company, by increasing its investment in India by $2 billion, up from a previously stated $5 billion. Amazon was reportedly considering a bid for Flipkart at the same time as Walmart.
In his 2018 shareholder letter, Amazon CEO Jeff Bezos described Amazon.in as “the fastest growing marketplace in India,” noting that the “mobile shopping app was also the most downloaded shopping app in India in 2017, according to App Annie.” Even more impressive, “Prime added more members in India in its first year than any previous geography in Amazon’s history,” Bezos’s claims in his letter. Based on an estimate by Citi Research, Amazon’s India market is worth around $16 billion.
Grocery is a major focal point for Amazon, and this is especially true in India. “Probably in the next five years groceries and consumables would be more than half of our business,” Amit Agarwal, the India head of Amazon, said in a Reuters article. Out of India’s 500 million Internet users, 100 million are Amazon users, and Agarwal wants to see this number double. “We’ll deliver everything to you in two hours,” he claims, which will include fresh groceries and other perishables.