Amazon to Pump INR 2000+ Cr Into India in 2025 to Supercharge Infrastructure

This year, Amazon plans to invest $233 million, or more than INR 2,000 crore, in India to develop and improve its operational infrastructure there.

As the Seattle-based e-commerce company competes with well-funded companies Zepto, Zomato, and Swiggy in the lucrative rapid commerce market, some of the funds will also be used to develop new tools and technologies for the company's fulfilment network.

This additional investment builds on Amazon's investments in building an operations network that enables the company to deliver to all operable PIN codes across India, the company said in a statement on June 19.

 This investment will boost the company's operations network's efficiency, processing capacity, and fulfilment speed, enabling Amazon to service consumers in India more quickly.

Amazon Facing Stiff Competition in India

Competition has increased for Amazon, which entered the Indian market twelve years ago and for a substantial number of years was mostly a two-player e-commerce industry with Walmart-controlled Flipkart.

With the support of well-known investors like SoftBank, startups like Meesho are entering the market and making a name for themselves by focusing on an entirely new group of underserved clients.

E-commerce is also being invested in by conglomerates like Tata Group and Reliance Industries. Additionally, the Indian market for 10-minute delivery is expanding thanks to firms Swiggy, Zepto, and Zomato's Blinkit. This presents a new obstacle for Amazon, which was a latecomer to the rapid commerce field.

Amazon India Merged E-Commerce and Logistics Arms

According to Amazon's regulatory filing with the Registrar of Companies (RoC), the merger was given temporary clearance by the Bengaluru bench of the National Company Law Tribunal (NCLT) on February 5, 2025.

 In a second filing with the NCLT, the e-commerce giant stated that the action will assist Amazon in streamlining the business operations of the two companies and lowering legal and tax compliance.

It added that the proposed merger would enable the transferor company's assets and reserves to be consolidated with the Transferee Company (Amazon Seller Services), strengthening the latter's finances and enabling it to make more significant business-related investments.

A representative for Amazon India responded to a question from the media by stating that the merger will streamline the organisation's structure.

 Amazon has several subsidiaries worldwide, just like the majority of international corporations, and we frequently assess our organisational structure. According to the spokeswoman, the goal of this transaction is to streamline our organisational structure.

According to a media report published in March 2025, Amazon plans to spin off its Indian business with an eye towards going public here. However, the e-commerce giant has no intentions to go public in India, as per various media reports.

Flipkart, Amazon's rival, is reportedly working on plans for its highly anticipated initial public offering (IPO) and has received board approval to move its headquarters from Singapore to India.