Soon after the historic acquisition of Myntra by the Indian e-commerce giant Flipkart there are talks of Amazon.com the global leader in electronic shopping world getting ready to invest in India. There is a market news that the latter is showing some serious interest into the Asian e-commerce industry and is planning to make India the hub by pumping in around 2 billion US$ in the following recent years. This as predicted has boiled the Indian industry and the expectations are at its peak as observers are keeping a hawk eye watch on the proceedings.
There are speculations of a ‘reactive move’ by Amazon.com in reply to the acquisition completed by Flipkart; as the company is trying to strengthen its hold by buying a very popular e-commerce brand Jabong. According to the sources talks are in progress for the buy-out and decisions regarding the costing factor are kept strictly under wraps until a median is reached.
Jabong, as per the market research report is valued at around $500 million but the inside sources input that the company is holding on to a premium of $700 million and is reported to have more than one suitor. One of the major reasons for Amazon.com being interested in the deal is to enter the 25% market share of Jabong that it enjoys in the Indian e-commerce market.
To talk about Amazon.com as a player into the global internet business would be an understatement. It has a wide reach in the industry in the west and as it has acquired the saturation levels over there it would obviously like to try a hand into the fastest growing region of the online business. Buying Jabong (remember it is making losses, but all others are too) would be a master-stroke strategy by the experienced American giant e-commerce company as it can refresh and restart the company operations at a complete new level.
Both the sources are mute on the developments as the acquisition is said to be on its primary stage. The Chinese market is another threat that is staring at the Indian market; the latest IPO of Alibaba is estimated to be the prime reasoning for the high-pace action and promotions of Amazon.com in India.
Looks like it wants to have the first say in India.