In one of our earlier posts http://wp.me/3FAl7 spoke about the disruptive force of the entry of giants such as Amazon and Reliance in their respective fields would have. Flipkart’s recent round of fund raising led (or so we believe as it came right after Flipkart financing deal) to Amazon announcing $ 2 billion India investment plans.
Amazon’s investment plans reflects the confidence that Bezos has in the Indian market, pegged at $ 13 billion and set to double every 2-3 years.
With losses plaguing everyone, it is really about how deep are the pockets for the incumbents. Amazon, with quarterly sales of ~ $ 20 billion, is a behemoth and since its entry in June last year in India it has introduced same day delivery, launced an ad blitz and offered heavy discounts and unless Flipkart continues to innovate and yeah continue to raise funds, it runs the risk of being streamrolled by Amazon.