BENGALURU: Amazon made losses of nearly $1 billion in India in the last fiscal year. But Amazon India head Amit Agarwal says the e-commerce major has not even scratched the surface of its growth potential in the country and will not shy away from another round of aggressive investments in this market.
Agarwal said Amazon is not even in ‘Day 1’ of e-commerce in India, repeating the words used by his boss, CEO Jeff Bezos, earlier this year on the occasion of the US company’s fifth anniversary in India.
Agarwal said the company is looking to add another 100 million users to its platform in India and take its Prime subscription base in the country to 100 million. This, he said, would transform the landscape of domestic e-commerce.
Agarwal declined to provide the current numbers for Prime and the overall user base in India. Earlier this year, the company said it has more than 100 million Prime users globally. Prime members pay a subscription for which they get faster deliveries, Amazon video and other benefits.
Agarwal said Prime subscription grew by over two times during this year’s festive season sales — which concluded on Monday — compared to last year. India continues to be one of the fastest growing Prime markets for the Seattle-based e-tailing giant. Prime drives a significant part of its overall sales in India.
Bezos has committed a $5-billion investment for India since Amazon’s entry. Much of this has already been invested. Agarwal did not disclose the size of possible future investments. Quoting a study of about 32,000 online shoppers by Kantar IMRB, Agarwal said more than 50% of online shoppers chose to shop on Amazon India during the festive season sale this year. Prior to this, quoting other reports, Flipkart had claimed leadership over Amazon during the sale.