Synopsis
Amazon India announced an investment of Rs 2,800 crore to bolster its infrastructure and operations, aiming to enhance delivery speeds across the country. This investment will double the footprint of its quick commerce vertical, Amazon Now, and expand its pan-India ecommerce network, including warehouses and delivery stations.Listen to this article in summarized format
The company said it will invest a part of this amount to double the footprint of its quick commerce vertical Amazon Now. Currently, its quick commerce services are operational in Delhi NCR, Mumbai and Bengaluru with 300 micro fulfilment centres.
Besides Amazon Now, the company said it will invest in expanding the pan-India network for its ecommerce business, including warehouses and last-mile delivery stations, to improve delivery speeds for customers in tier-2 and tier-3 towns.
This development comes months after Amazon India announced an investment of Rs 2,000 crore in June 2025 to expand and upgrade its operations infrastructure, aiming to make ecommerce deliveries “faster and more reliable”. That came at a time when horizontal ecommerce platforms were facing competition from quick commerce platforms.
The investment in June enabled the launch of 17 new fulfilment centres, six sortation centres, and 75 last-mile delivery stations across India.
Amazon India also plans to invest the new funds on technology, including artificial intelligence (AI) and machine learning, in its operations network.
“This year, we are investing over Rs 2,800 crore (~$300 million) to further strengthen these efforts, while continuing to scale our operations network and advance the technology that enables faster, safer, and more reliable deliveries for customers,” said Abhinav Singh, vice president (VP), operations, Amazon India and Australia.
Last December, Amazon increased the investment commitment for its India operations to $35 billion, up from $15 billion. With this, the Seattle-based company has committed about $40 billion between 2010-2024 to India.
Amazon’s latest announcement comes at a time when ecommerce players — relatively late entrants in the race — are rapidly expanding their dark store networks, ET reported in March.
In December, Amit Agarwal, Amazon’s senior VP for emerging markets, had told ET that the company had seen strong traction in cities where its quick commerce service has been launched.
In FY25, revenue from operations for Amazon Seller Services, the marketplace arm of the major, rose 19% from the year before to Rs 30,139 crore. The revenue growth was boosted by an increase in marketplace services and advertising revenue. The company's loss narrowed to nearly a tenth of the year before to Rs 374 crore, as it tightened cost control.
ET reported on April 2 that ecommerce majors such as Amazon and Flipkart are expected to clock Rs 19,000-20,000 crore in ad revenue in 2026, up from the previous year’s Rs 16,000 crore.
