Amazon India better watch out stiff competition ahead

India’s two biggest e-commerce groups Snapdeal and Flipkart are attempting a merger engineered by Japan’s Softbank, in a bid to compete with Amazon, which is planning spend over £4.05bn ($5bn) to become India’s dominant internet retailer.

SoftBank owns a 35 per cent stake in Jasper Infotech, Snapdeal’s parent company, is also in advanced talks with Flipkart, to sell Snapdeal for $1bn. comp

Snapdeal, Flipkart and Amazon India all have recorded an aggregated losses of £1.13bn ($1.4bn) in 2016, as they have to invest heavily in marketing and logistics.

Masayoshi Son, SoftBank’s billionaire founder, a Korean-descendant Japanese businessman, whose lucrative investment in China’s Alibaba, is hoping to create another miracle. In February, SoftBank disclosed a valuation loss of £286m ($353m, ¥39.3bn) in Snapdeal and Ola. Snapdeal has committed to spending £ 8.1bn ($10bn) in Indian technology companies over the next decade.