US retail major Amazon intends to put $3bn behind the growth of its quick commerce operations in India through 2030, its biggest bet yet on the sector.
Citing unnamed sources, Reuters reported that the funding would arrive in two stages: $1bn by the close of 2027, followed by a second instalment of $2bn by 2030.
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Much of the capital will be directed at growing the network of compact, locality-based warehouses that keep the Amazon Now service stocked.
One source told Reuters that Amazon is aiming for close to 1,300 outlets by April 2027, a rise from the current 750.
Further funds are expected to go towards upgrading inventory management systems, bringing in AI-driven tools for forecasting demand, and broadening what is available to order, a source noted.
Amazon’s offering in this space will stay centred on everyday essentials, steering clear of the wider ranges, including smartphones, that some competitors have adopted.
In India’s larger e-commerce landscape, dominated by Amazon and Walmart’s Flipkart, both companies were later entrants to quick commerce than their rivals.
A source said Amazon rejects the view that it missed its window, noting instead that it prioritised getting its operational approach right, which included fitting stores with cold storage rooms instead of refrigerators.
Amazon reportedly sees India as central to its expansion plans and continues to build out its data centre, cloud and e-commerce presence there.
According to the report, Amazon said its quick commerce arm, operated under the Amazon Now banner, had crossed $1bn in annualised gross sales across the last three months.
The company remains under close regulatory watch as a foreign e-commerce operator in India, and an antitrust case from 2024 is still unresolved, with the watchdog having concluded Amazon gave preferential treatment to certain sellers —a finding Amazon disputes.
Quick commerce has expanded swiftly since 2022 but has faced criticism over the safety of delivery riders operating in residential zones under tight time pressure.
Earlier this year, in January, authorities directed firms to halt “10-minute” delivery advertising.
Retail Insight Network has contacted Amazon for comment.
