Funding and acquiring business segments is a procedure possessed to expand businesses. Leading businesses fund startups and gain valuable profit or insights into the market. Many startups have boomed with the process of funding and enlarging. Similarly, Amazon also has a vivid history for funding in startups.

Amazon is not a new player in this game. Jeff Bezos has constantly run rounds for funding startups that will prove beneficial in the forthcoming years. India remains one of the largest markets for Amazon and with upcoming competitors, the company cannot afford to lose their position.

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Hence, after their launch in 2013, Amazon has invested in several startups that proved to be beneficial in the long run. These startups are carefully studied and analyzed for the benefit of the company. Furthermore, Amazon runs funding rounds every year looking for prospect startups to fund and grow their business.

Over the years, Amazon has funded a handful of startups. These startups are based on different fronts and sectors. This article will help you understand why did Amazon choose these startup companies.

Shoppers Stop

An e-commerce site bought 5% shares in a fashion brand, confusing, isn’t it? But anything Amazon does, the end goal is to increase sales and expand the business. India market solely is an offline shopping segment. We love to go to places and buy things rather than online shopping. Amazon realized this, earlier than its competitors.

An amalgamated sales with online and offline mode was a boost to the clothing sector of Amazon and certainly was a great decision.

Westland

One of the earliest investments of Amazon was in 2016 with Westland. Amazon started as an online bookstore in early 1994. Customers bought books because they were relatively cheap and can be used for years together.

Hence, when Amazon came to India, it needed a well-established publisher that can help them understand the demographics of the Indian reading market.

HouseJoy

HouseJoy was founded in India that provides services for houses. Their services included carpenters, plumbers, furnishings and a few more. The $23 billion investment helped Amazon with insights of the market demands and requirements.

After a year of investment, they started their own services of spa and beauty with their operations secluded in HouseJoy. This investment bought Amazon closer to market analytics and helped them grow Amazon.in.

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BankBazaar

Amazon invested a lump sum of $60 million in BankBazaar. This was a crucial decision for the company. What was the motive behind such huge funding? Well, Bankbazaar helps customers compare financial aspects like loans, credit cards, products, fixed deposits and many more.

As India is not completely penetrated with the idea of credit or debit cards hence, financial insights could be gained with the investment. Amazon understood the Indian market and made changes to its functioning accordingly.

QwikCilver

A unique startup founded by an alumni group of BITS Pilani earned funding of about $110 million. QwikCilver works around the idea of gift vouchers and is based on the gift card technology.

A strategic and analyzed investment helped Amazon customers to store money in the semi-closed wallet and use it later for other purchases. Furthermore, this move helped Amazon users to save money and increased sales for Amazon.

Emvantage

Even after an adequate investment in BankBazaar, Amazon decided to invest in Emvantage. Why? The Delhi based startup with a specific gateway for online payments and transactions. With this investment, Amazon got personalized payment platforms. All payment modes like credit cards, debit cards, mobile applications, prepaid wallet and a few more were added to Amazon’s payment modes.

Amazon is known for its strategic and well-planned investments. All the above-mentioned investments helped Amazon understand the Indian market and develop their site accordingly.

See Also: What is Series A Funding and How it works?

Moreover, these investments have developed the Indian startup sector and strengthened operations for the underlying needs of the sector. A total sum of $5 billion is invested in India by Amazon so far.

The company plans to invest in other startups in the near future but verified news and confirmation from senior officers is pending.

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