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India a drag on Amazon's international losses, investments continue

India has been the forefront of Amazon's investments with Jeff Bezos having committed over $5 bn

Alnoor Peermohamed  |  Bengaluru 

Amazon, sales, Diwali, New years
Prime subscribers spend twice as much as regular e-commerce customers in the US

saw June-quarter operating losses from international operations, of which is a large part, widen to $724 million from $135 million a year ago due to heavy in data centres and content in a bid to lure more to its loyalty programme called Prime. 

The world's largest firm has stepped up in — over $600 million in the country, disclosed since January — to set up data centres, improve logistics and payments, besides building local content for its Prime video service that is offered to its loyal subscribers. 

is also investing more in local data centres to stream videos to the growing number of Prime customers, with the company claiming a third of new signing up for its loyalty programme. It is also building content, Inside Edge, the first of 18 Indian original series and has bought rights for local movies to target in specific regions of the country. Prime subscribers spend twice as much as regular in the US, a trend that could mirror in other such as

The data centres also help Amazon's cloud by hosting of hundreds of in

"We continue to invest in We're very hopeful with the progress we've made with sellers and alike in and we see great momentum and success there, so we continue to invest and we have some of our best people in that business," chief financial officer Brian Olsavsky said. Amazon, which follows the January-December financial year, had posted operating losses of $135 million in the June quarter last year. In January to March, it posted losses of $481 million.

jumped 17 per cent to $11.48 billion in the quarter on the back of growing across geographies, including For the quarter, grew its revenue 25 per cent to $38 billion as it got more to shift online from traditional It saw quarterly income drop 77 per cent and hinted that it could lose up to $400 million in operating during the current quarter. 

has been at the forefront of Amazon's investments, with founder having committed over $5 billion to conquer the country's market, the last open market in the world. It also is expanding at a time when rival Flipkart is looking at investors such as sustained losses for over 20 years before turning up marginal this year.

Flipkart has closed talks to acquire smaller rival Snapdeal, which will help it bring as an investor. At the same time, the Indian market is turning into a three-cornered fight, with Alibaba, the Chinese firm, entering the fray by investing in with its Mall.  

First Published: Sat, July 29 2017. 01:05 IST