Get ready for fireworks: Amazon pumps $190M into India ahead of festival boom

Christmas comes early to India, so to speak. The biggest holiday season in this part of the world starts with Dussehra this month and goes on to the fireworks festival of Diwali in November.

The ten-day Dussehra marks the triumph of good over evil or the victory of Rama over the demon king Ravana in the epic Ramayana. Diwali is celebrated with fireworks on a new moon night in a representation of light prevailing over darkness. The part that ecommerce companies like best about this festive season is that people buy new clothes and gifts for family and friends.

It is also the season when competition is fiercest between rival retailers who go all out with discounts and promotions to win customers and boost sales. In the last couple of years the main arena for this battle has moved online, with the heavily funded Flipkart, Snapdeal, and Paytm trying to outdo one another even as global rival Amazon breathes down their necks.

Sale vs sale

Flipkart, which had a snafu-ridden Big Billion Day last year, has now stretched it into a five-day sales bonanza which starts on Tuesday. Snapdeal wants to ensure there are no snafus in delivery with a US$20 million investment in logistics partner Gojavas, announced yesterday.

As for Amazon, it pumped US$190 million into its Indian arm just before the festive season, reports Economic Times.

Amazon founder Jeff Bezos had waved a cheque of US$2 billion riding atop a truck in Bangalore last year, a day after a US$1 billion funding round for its main rival in India, Flipkart. Half a billion dollars out of that treasure chest has already made its way to India.

So this Dussehra and Diwali, the fireworks will go off not only in the streets but also on online shopping sites. Amazon has a Great Indian Festival Sale next week, and no prizes for guessing that it coincides with Flipkart’s Big Billion Day Sale.

Source: Economic Times