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Flipkart’s largest shareholder Tiger Global Management invests in Amazon

Published 18 November 2015

India-based ecommerce company Flipkart's largest shareholder Tiger Global Management has increased its stake in US-based online retailer Amazon.

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Tiger Global Management, which is a tech-oriented hedge fund, has bought 2.44 million shares of Amazon, upping its stake to more than 3.19 million shares, The Business Insider reported.

After taking a mammoth share in Netflix, Amazon has become the fund's second largest stock position.

The move comes as Amazon's Indian arm is in a fierce market share battle with Indian ecommerce company Flipkart. The hedge fund's large investment in the US-based retailer may prove to be an awkward move for Flipkart, reports Livemint.

Tiger Global is a US-based investment fund which acquires shares in public and private companies that are managed by different partners.

Tiger has also held stakes in Chinese online retailer Alibaba and US-based social networking site Facebook.

In 2014, Amazon CEO Jeff Bezos had announced plans to invest $2bn in India as part of its strategy to overtake Flipkart in order to become the largest online retailer in India.

Meanwhile, Flipkart raised over $2.5bn in the past one and a half years to keep Amazon at bay and to fortify its position in the country's online retailing market. Tiger had contributed more than $1bn to this amount, taking the valuation of Flipkart to $15bn, reports Livemint.

The move by Amazon comes at a time when the US company is testing various means of expanding business using innovative means. This year, the retailer launched one-hour delivery service with prime Now and earlier this week, it announced a next-day grocery delivery service with Amazon Pantry to strengthen its foothold in supermarket business.

With the new service, Amazon Pantry customers will be able to lay their hands on more than 4,000 products ranging from food, health, beauty and drinks. Fresh fruits and vegetables are excluded from the offerings.

Through this new next-day grocery service, Amazon will allocate boxes to customers that can hold up to 20kgs of products. The traditional method involves using a one-off charge for deliveries, reports Yahoo News UK.


Image: Tiger Global invests in Amazon. Photo: Courtesy of sixninepixels/FreeDigitalPhotos.net.