Indian retail market to see $300 million boost from Amazon & Walmart
Bengaluru, India | Red Newswire | Jan 24, 2016 Last Updated at 9:00 AM IST.
Amazon and Walmart have been trying to build a network and get a share in the Indian retail market. Thus, the two have decided to invest $300 million in the Indian market.
The world’s two largest retailers aim to build a commanding position in the Indian market which according to estimates might cross $1 trillion in the coming 4 years.
Both the companies dominate the retail market in US, but are still trying to take control in the Indian market by competing with home-ecommerce companies like Snapdeal and Flipkart. The home-grown companies have also raised high funds from investors so as to strengthen their positions.
The Amazon India is focusing on getting sellers and buyers on the same platform, whereas Walmart is focusing on small retailers.
Recently Amazon had invested $250 million in its seller services which makes a total of $710 million investment in its seller services.
On the other side, Walmart is all ready to infuse $53 million and plans to set up 50 stores in India. The contrasting point is that Walmart is closing its 270 global stores at the same time.
Rajneesh Kumar, VP of Walmart India said, “The latest equity infusion is to fund working capital and capex requirements of our growing business in India. As a wholesale cash and-carry business, we work with and develop local suppliers and create local beneficiaries along the supply chain.”
Gearing up to the competition, Flipkart is all set to raise another $1.4 billion fund and Snapdeal has already strengthened its team and has launched Snapdeal Ads.