Last year, Amazon invested Rs 2,800 crore into the Amazon Seller Services marketplace and Rs 450 crore into Amazon Pay
(India). In December 2018, Amazon Seller Services has also received Rs 2,200 crore from the parent company.
Amazon has made over $5 billion investment in India, so far. Some reports suggest that the company may have invested an additional $2 billion on top of that.
Amazon’s new investment into the India market also comes at a time when antitrust regulatory body Competition Commission of India (CCI) has ordered an investigation against Amazon and Walmart-owned Flipkart on complaints of deep discounting practices and tie-ups with preferred sellers. During his India trip, Jeff Bezos
is likely to meet Prime Minister Narendra Modi, various government officials and industry leaders and may also discuss various regulatory issues, according to the sources. Bezos is also expected to face unprecedented protests from thousands of small scale traders during his visit to the country.
“The protests will be spearheaded by Confederation of All India Traders (CAIT) representing 70 million traders and 40,000 trade associations,” CAIT national secretary Sumit Agarwal said in a tweet on Tuesday. CAIT also welcomed the step by CCI to order an investigation into the business model of Amazon and Flipkart. “Protests (are) planned across 300 cities tomorrow against India visit of Jeff Bezos,” CAIT tweeted on Tuesday.
Like in the US, Amazon is pitted against Walmart, which acquired a majority in Flipkart in 2018 in a $16-billion deal, to dominate the e-commerce market in India. This market is expected to touch $200 billion by 2028, from about $30 billion in 2018. Amazon is also eyeing the digital payments space in India which is expected to rise fivefold to reach $1 trillion by 2023, and it would be led by the growth in mobile payments, according to a report by financial services company Credit Suisse.