Amazon gets RBI nod for e-wallet in India

Source: LiveMint.com, Apr 13, 2017

Bengaluru: Amazon India has received the Reserve Bank of India’s (RBI) approval to launch its own digital wallet in India, paving the way for the American online retail giant to gain a slice of India’s fast-growing digital payments business.

Amazon India, which had applied for what is called a Prepaid Payment Instrument (PPI) licence nearly a year ago, will now look to take on established rivals such as Paytm and Freecharge as it prepares to launch a prepaid wallet service that will be broader in scope than its Pay Balance service and will not be restricted to Amazon-based transactions. Read the rest of this entry »

E-tailers may be shutting down, but e-commerce market in India may log 17.8% growth in 2017-18

Source: Financial Express, Apr 11, 2017

New Delhi: Despite facing various challenges including shutdown of a few e-tailing firms, the size of the domestic e-commerce market, which stood at $28 billion in 2015-2016, is expected to see a 17.8% growth in 2017-18, thus reaching the $33-billion mark, according to data sourced from industry body Nasscom.

With valuations in the industry coming down, it has seen a sharp surge in funding activity. According to a report by Jefferies, during January-March quarter of CY17, private internet companies raised $2 billion, the second highest after Q3 of CY15. In CY16, these companies had raised only $2.7 billion.

The report noted that e-taling once again accounted for over 60% of the fund raised during the quarter as Flipkart, Paytm Mall and Delhivery did $100 million plus rounds. However, both Flipkart and Ola raised money at valuations lower than previous rounds which is likely to have helped them raise large rounds. In the aftermath of demonetisation, four fintech companies also raised $100 million during the quarter. The companies included Freecharge, Ccavenues, Trueblanace and Creditmantri.

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Amazon opens 7 warehouses in bid to boost sales of large appliances, furniture

download.pngSource: LiveMint.com, Apr 06, 2017

Online marketplace Amazon India said it has opened seven new warehouses in a bid to boost sales of high-priced products such as televisions, refrigerators and furniture.

The new warehouses and two already existing ones will be used exclusively for large appliances and furniture—categories that require online retailers to build an independent logistics network, unlike the one they use to deliver smaller products such as books, mobile phones and clothes.

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Amazon India to invest $515 mn in food retail business over next 5 years

Source: Business Standard, Mar 24, 2017

New Delhi: Global e-commerce major Amazon is aiming to enter the food retailing sector in India with investment plans of $515 million over the next 5 years.

Food Processing Industries Minister Harsimrat Kaur Badal on Thursday confirmed the company’s investment plans while adding that Metro Cash & Carry has also shown interest in food retailing.Back in January, Amazon had filed its application with the Department of Industrial Policy and Promotion (DIPP). Online players Grofers and Big Basket also have also submitted FDI proposals regarding retail trading of food items.

While Amazon is one of the major e-commerce players in India, Grofers and Big Basket are into online grocery space.

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Flipkart, Amazon take divergent routes for next phase of growth

Source: LiveMint.com, Mar 22, 2017

Bengaluru: India’s top e-commerce firms, Flipkart and Amazon India, are adopting divergent strategies to increase sales, reversing the roles each company has played so far in the country’s $14-15 billion online retail market.

Rather than spending cash and effort on increasing the absolute number of online shoppers, Flipkart is instead trying to sell more products in untapped categories to its existing users. Amazon, on the other hand, will lead the expansion of the e-commerce market as it adds all kinds of products and maintains its high levels of advertising spending, which is aimed partly at attracting new users.

Currently, online penetration—the percentage of shoppers who have bought a product online at least once—is highest in books, smartphones and electronics. The online reach of most other categories such as fashion and furniture is still abysmally low.

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Amazon to open food-only outlets along with an online platform to sell locally produced items

index.jpgSource: The Economic Times, Feb 16, 2017

NEW DELHI: India could be the second country to see Amazon brick-and-mortar stores, with the Seattle-based company having sought the government’s approval to open food-only outlets along with an online platform to sell these locally produced items.

The US giant plans to undertake “retail trading of food products (produced or manufactured in India) to customers at any location through any channel, offline or online, including e-commerce, across India,” according to a person who saw the application filed by Singapore-based Amazon Corporate Holding Pvt Ltd, which will hold 99 per cent of the proposed entity with the rest owned by Amazon.com Inc, Mauritius.

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India’s e-commerce majors are outliers in seeking govt protection

Source: Business Standard, Feb 13, 2017

Bengaluru: The plea of India’s largest homegrown e-commerce firms such as Ola, Snapdeal and Flipkart to the government for protecting them from global competition may have fallen on deaf ears, as the centre is gung-ho over the idea of attracting investments from wherever it wants to come.

“Not a single sound or whisper of protectionism is being heard in India, it’s only being heard in developed economies outside. That in itself is a tribute to the fact that India is willing to accept investment from wherever the investment wants to come,” said Arun Jaitley, Minister of

Finance, at the Make in India event in Bengaluru on Monday.

Jaitley, who was speaking on his experience of attendingindustry events across the country over the years, said that he had witnessed a positive change in the overall business environment. He added that the government was now tuning its policies in support of bringing in those investments from abroad.

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