Amazon.com Inc. said it will invest US$2 billion to expand in India as competition for customers intensifies in the South Asian e-commerce market, the Wall Street Journal reported on Wednesday.
“We see huge potential in the Indian economy and for the growth of e-commerce in India,” chief executive Jeff Bezos said in a statement.
Amazon’s announcement came a day after local rival Flipkart Internet Pvt. said it had raised US$1 billion in fresh funding to expand in the country. Flipkart, India’s largest online marketplace, was started by two former Amazon employees in 2007.
India’s online retail market is expected to grow 11-fold to US$23 billion in the next four years, according to Nomura.
Amazon doesn’t sell products directly to customers as local law sprohibit foreigners from directly investing in multibrand retail companies. Instead, the e-commerce giant allows merchants to use its website, storage facilities and logistics network to sell and deliver their products, the report said.
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