Amazon Inc. has all but ploughed the amount it pledged to expand in India and fend off its local larger rival, the Walmart-controlled Flipkart.
The e-tailer has committed another $500 million to its food retail business, Amazon Retail India Pvt. Ltd., into which it recently pumped in about $14 million.
Amazon Seller services—which is Amazon India’s largest entity and marketplace arm—topped the investment chart with $3.8 billion so far, half of which has already been wiped out. In the fiscals through March 2015-2017, according to the filings, its accumulated loss stands at $1.6 billion. Amazon is yet to file its financials for the year ended March.
To be sure, Amazon has increased the pace of its India investments in the last nine months alone as it has already pumped $1 billion in its marketplace—its largest investment in the shortest time.
Rise In Expenses
Its annual expenses have also shot up. In the fiscals through March 2015-2017, Amazon’s annual expenses grew threefold to $1.1 billion, according to the documents.
Singhal said Amazon is being smarter by building the business ground-up, as its investment in India is much smaller than Walmart, which spent $16 billion to acquire Flipkart. He expected Amazon to invest another $5 billion in India. "This time, Amazon will finish its committed investment in shorter time."
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