Amazon Coming to India in 2012

Amazon, the world’s largest online retail company, is planning to enter the Indian market, according to a report by TOI. It is in talks with multiple Indian e-commerce startups like Flipkart and Letsbuy, about a possible acquisition.

An acquisition would be the best way for Amazon to enter the Indian market, and ramp up quickly, in terms of market share. So far though, most of the talks haven’t been working out, and Amazon may also consider entering the market on its own.

It is currently in the process of hiring more than 200 people in Hyderabad, Bangalore and Chennai to man its operations. We had reported about this around a month back – Amazon Might Be Preparing to Enter India Soon.

It has already bought space for a warehouse in Mumbai. Flipkart is currently the biggest player in the Indian e-commerce space. Like Amazon, it started out by selling books online, but has since branched out into multiple products. It recently raised $20 million in Series C funding from Tiger Global.

Considering the huge e-commerce opportunity in India, it is unlikely that they will sell to Amazon, unless they get a huge premium above their current valuation.

The Indian e-commerce market is supposed to be worth around $10 billion in 2011. If Amazon enters now, with a big ticket acquisition, it has a good chance of dominating the space in a couple of years.

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