May 14th 2024.
Amazon, the well-known e-commerce company, has recently made a significant investment in its Indian counterpart, Amazon Seller Services, according to a recent regulatory filing. This comes at a time when India's e-commerce industry is projected to grow to an impressive $200-230 billion by the year 2030, with a steady increase of 20-22 percent.
In their filing with the US Securities and Exchange Commission, Amazon stated that their board has approved the allotment of 1,66,00,00,000 equity shares of Rs 10 each, totaling to Rs 16,60,00,00,000, to their existing shareholders on a right basis. This marks the second time this year that Amazon has invested in Amazon Seller Services, with the first being a sum of Rs 830 crore in February. It is worth noting that Walmart, another major player in the e-commerce industry, has also recently invested $600 million in their Indian rival, Flipkart.
As the competition in the Indian e-commerce market heats up, it is expected that the country's growing economy will add about 210 million new users by 2030, on top of the existing 240 million users. These new users are expected to mainly come from Tier-II and beyond cities, according to Redseer, a leading market research firm. This indicates a significant potential for growth in the e-commerce sector in India.
With such promising projections, it is no surprise that Amazon is making a strategic move by investing in its Indian arm. This move also reflects their confidence in the potential of the Indian market, which is expected to be a key player in the global e-commerce landscape. As more and more people in India gain access to the internet and online shopping, it is clear that the e-commerce war in the country is only going to intensify. And with major players like Amazon and Walmart vying for a larger share of the market, it will be interesting to see how the e-commerce industry in India evolves in the coming years.
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