Amazon Delivers $233M Investment into Boosting Indian E-commerce

Amazon (AMZN) is investing $233 million in its India business to take on increased competition in the world’s most populous country.

Expand Operations

Amazon India said the sum would be spent this year to expand and upgrade its nationwide operations network. It is also developing new software and tools to help delivery personnel with navigation, employee safety, and the overall delivery process.

It said the moves will help it double down on its efforts to deliver to all PIN codes in the country with a population of around 1.4 billion people.

“This investment will enhance processing capacity, improve fulfillment speed, and increase efficiency across the company’s operations network,” Amazon said. “That will help Amazon serve customers across India faster.”

As part of the investment, the company will continue work on some initiatives to support its contractors and employees, including rest spots for delivery personnel; financial education and support; scholarships for associates’ children; and healthcare support for truck drivers.

Increased Competition

Competition in the sector is increasing in the country. Walmart (WMT)-owned e-commerce firm Flipkart is eyeing further growth, declaring recently that Flipkart is on a path to profitability with quick commerce – delivery within 15 minutes – accounting for 20% of the e-commerce market.

There are also startups such as Meesho, backed by investors like SoftBank (SFTBY), and domestic conglomerates Reliance Industries and the Tata Group, which are also investing in e-commerce.

It’s not just the sheer size of the market but growing demand driven by a more tech-savvy and affluent population.

Is AMZN a Good Stock to Buy Now?

On TipRanks, AMZN has a Strong Buy consensus based on 46 Buy and 1 Hold ratings. Its highest price target is $305. AMZN stock’s consensus price target is $241.64 implying an 13.70% upside.

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