4 April, 2016, Bangalore: In order to ramp up its operations, Amazon India has been getting a strong financial backing from its CEO, Jeff Bezos. The CEO had already invested around US $2 billion in the Indian unit in 2014 and ready to pump more funds to give the extended support to the unit. In the recent development, Amazon India’s authorised capital has increased to Rs 16,000 crore which has already triggered a panic button among its competitors such as Flipkart and Snapdeal who have been facing a really hard time to raise funding.
Now, the recent report from the media suggests that Amazon India has almost doubled its authorized capital from Rs 8,500 crore in February (states the documents with the Registrar of Companies). The firm’s authorized capital was Rs.1,500 crore in July 2014, when Amazon.com Inc.’s chief executive Jeff Bezos promised it will invest as much as US $2 billion in India over the next few years.
Company’s recent moves clearly indicate that it is speeding up its Indian operations to take over its counterparts Snapdeal and Flipkart. With the recent move by the government to permit 100 per cent foreign direct investment in online retail of goods and services, Amazon India’s future is looking very bright in the country.