Amazon infused 240 Cr to bid the competition

Amazon has placed its strategic investment plan in place to address Indian arm to capture the lion share in the food-only retail industry in India. As per the report, Amazon Retail India Pvt. Ltd has received Rs. 240 Crore from existing shareholder Amazon Corporate Holdings Pvt. Ltd, a Singapore-based existence controlling the food-only retail business across ASEAN countries.

After the recent blows of the Indian government’s new FDI policy, the e-commerce giant channelized its Indian food-only retail Grocery & Gourmet Food’s Storewhich sells over 3.5 lakhs of food products online. Also, Amazon claims itself to be people’s favourite one-stop shop that supplies all the needs to convert home a restaurant by offering 5-10% of discounts on groceries available on its online supermarket.

As per the report, the food and grocery accounted for a whopping 61.4% of India’s total $880 billion retail market in 2018. Our food retail business currently serves customers in 100+ cities across India. We are on track to scale the business further by adding more selection and expanding reach to serve customers in more pincodes,” Amazon responses.

Amazon is sharpening its marketing skills on grocery & gourmet, which is an evergreen dynamic business with the latest investment by Amazon in the Retail sector in India, Amazon has created competition with other players including BigBasket, which is India’s largest player and estimated valuation of $2.3 billion. The series F round at BigBasket was contributed by Mirae Asset, CDC Group and existing investor Alibaba and has recently secured $150 million in a funding round.

The key strategy is to target all customers on Amazon.in and turn them to grocery buyers through exclusive discount offers and targeted ads. With the fresh recent fund infusion into Amazon Retail India, Amazon is looking to expand inventory and its scale of operations.

Lastly, the grocery & gourmet business is very important for the e-commerce players growth story is concerned from Flipkart to Amazon. The overall market is grossly controlled by four camps – Flipkart, Amazon, Big Basket and Grofers.