I’m sure the title of the post must have caught some people off-guard, specially since we had written about Amazon’s Indian venture – Junglee.com just a week back. But then, it was merely a marketplace service for other online (smaller) retailers in India to list their products for some traffic. The good news is, the Indian government has just granted an approval for Amazon to setup its courier and logistics in the country and we can soon expect the retail operations of Amazon.
What’ll happen to Junglee.com?
The big question right now is what’ll the fate of Junglee.com once Amazon sets up its complete retail operation in India? I’d guess it’ll eventually be integrated with Amazon.in or Amazon.co.in and till then it will continue to be an online marketplace & price comparison portal for small retailers.
Amazon has been working hard to setup its retail operations in India for quite sometime now and has been hiring talents across the country. We expect some big acquisitions in the near future, specially since its biggest competitor, Flipkart.com recently acquired Letsbuy.com for a whopping $25 million. Many people were shocked to see the surprise move from Flipkart & letsbuy, but now it all makes sense.
As per the press release, Indian government approved setup of retail operations of Amazon on January 20th 2012. Flipkart, which has consistently managed to raise capitals from various VCs, must have thought it appropriate to move fast and acquire one of the biggest online retailer, Letsbuy before Amazon makes its move. The acquisition was announced on February 9th 2012.
One thing is for sure. This is just a beginning. Expect more acquisitions and tie-ups in the Indian e-commerce space in coming months.