Amazon plans to pump in more funds in India

As Flipkart races ahead of counterparts after raising 1 billion dollars (over Rs 6,000 crores) through the latest round of funding, competitor

Amazon.com has announced plans to pump in another two billion dollars (over 12,000 crores) in India to aggressively take on competition.

The company, since the launch of its official Indian website in June last year is giving tough competition with several initiatives like low prices, same-day delivery, wide choice of product categories and investing in advertising and marketing activities. The competition to grab a pie of India’s buoyant online market is getting fierce with experts fearing that it may lead to a total wipe out of smaller players. Amazon and Flipkart are joined in India's 13 billion dollars-worth (Rs 78,357 crores) e-commerce sector by Snapdeal, Jabong and eBay.

The e-tailer estimated to be registering 500 million dollars-worth (over Rs 3,000 crores) in gross sales, plans to use the fresh funds to add more product categories to its existing 28 categories apart from introducing fast and improved delivery experience, lower cost structures for sellers.

Amazon has also announced that it will increase its presence in the country by opening five more warehouses, almost doubling storage capacity to half a million square foot. The announcement came immediately after the Flipkart deal. The Indian government is said to be contemplating allowing foreign retailers to sell directly to customers. It recently announced that retailers can sell online products manufactured in India.

The apparel segment of Amazon offers over 12,000 contemporary and traditional styles from more than 90 brands, a mix of private, national and regional labels. The company's sunglasses store has more than 2,800 styles catering to men, women and children. It also offers an assortment of accessories to women. Amazon has also launched an intimate apparel store for women featuring over 1,100 styles of lingerie and nightwear from more than 35 national and international brands and a health and personal care store providing women with their daily necessities.