Amazon, the world’s largest online retailer, raised its investment commitment for India to $35 billion on Wednesday. This move builds on the $15 billion pledge that chief executive Andy Jassy announced in 2023, and Amazon allocated approximately $12.7 billion of that amount to AWS’ cloud infrastructure.
With this expansion, the Seattle-headquartered company has committed a cumulative $40 billion to India since 2010. The company stated that it will deploy the new capital to scale up its artificial intelligence (AI) capabilities and to reinforce its logistics network.
Moreover, the online retailer decided to inject additional funds at a time when it intensified its focus on 10-minute deliveries, a segment that had hit the company hard within online commerce. In this category, the company competes with Eternal-owned Blinkit, Swiggy’s Instamart, Nexus Venture Partners-backed Zepto, Tata Digital’s BigBasket, and Flipkart Minutes.
The fresh infusion highlights how the company is accelerating its India strategy while quick-commerce players such as Swiggy and Zepto scramble to secure public-market funding amid ongoing cash burn.
Additionally, it earlier announced that it was adding two dark stores a day across Bengaluru, Delhi-NCR, and Mumbai to expand its quick-commerce footprint, with a target of reaching 300 stores by year-end. Meanwhile, Meesho—Amazon’s rival in the tier-II and beyond ecommerce segment—listed on the stock exchanges on Wednesday following a $600-million initial public offering (IPO) at a $5.9-billion valuation, and its shares opened with a 45% rise.
Amit Agarwal, SVP of emerging markets at Amazon, said in a statement, “We have invested at scale in growing the physical and digital infrastructure for small businesses in India, creating millions of jobs.”
Furthermore, Amazon India reduced costs in the previous fiscal year to narrow its losses. All four major businesses—Amazon Seller Services, Amazon Transport Services, Amazon Wholesale, and Amazon Pay—reported substantial reductions in FY25, largely due to lower advertising and employee expenditures. Revenue from operations at Amazon Seller Services grew 19% year-over-year to Rs 30,139 crore in FY25, compared with 14% growth in FY24. Although the growth rate has improved from 3% in FY23, it remains lower than during the pandemic years, when growth reached 49% in FY21 and 32% in FY22.
Last week, the online retailer reaffirmed that it was on track to complete the $12.7 billion AWS investment and that it will “bring the benefits of AI to over 15 million small businesses.”
Additionally, Amazon’s push into AI and domestic cloud expansion aligns with similar moves by US technology majors. Microsoft, in a statement on Tuesday, announced a plan to invest $17.5 billion in India between 2026 and 2029 to accelerate AI adoption at a national scale. This commitment adds to the $3-billion investment it declared in January 2025.
