Amazon.com Inc.’s (AMZN) total exports from small and medium sellers in India have crossed the $2 billion mark, two company executives told Reuters on Monday.
Amazon’s “Global Selling” program to export products to global markets was launched in India, a key growth market for the company, in 2015. The program, also operational in other markets, has helped more than 60,000 Indian sellers export products to 15 Amazon websites, the company said.
During a visit to India at the start of the year, Amazon CEO Jeff Bezos said the U.S. e-commerce company would invest $1 billion in digitizing small- and medium-businesses in India and expected to export Indian-made goods worth $10 billion by 2025.
Current sales are still a fraction of India’s total exports of goods and services, which are estimated at nearly $530 billion in the financial year that ended on March 31.
“It took us three years plus to hit the first billion dollars, today we are able to hit the next billion dollars, 100% growth in the last 18 months,” Gopal Pillai, VP for seller services at Amazon India, told Reuters in an interview.
Tech giants from Alphabet Inc’s Google (GOOGL) to Facebook (FB) have in recent months invested in India to tap into the country’s promising internet market. Last week Google signed an agreement to acquire a 7.7% stake in Reliance Industries’ digital unit Jio Platforms Ltd. The acquisition takes the total investments into India’s Jio to 1.52 trillion rupees ($20.22 billion). Earlier this month, Google announced that it will commit $10 billion for investments into India over the next 5-7 years through a mix of equity investments, partnerships, and operational, infrastructure investments.
Amazon has previously said it has also tied up with Indian banks to provide cheap loans to its small sellers.
Shares in Amazon have been on a steady winning streak rallying 60% so far this year with the $3,034.20 average analyst price target suggesting that the stock has a mere 2% upside potential over the coming year.
Meanwhile, ahead of Amazon’s earnings this week, Cowen & Co. analyst John Blackledge raised the stock’s price target to $3,700 (25% upside potential) from $2,750, saying he remains bullish as he views valuation attractive at ~20x EV/EBITDA.
“We expect strong 2Q20 results with Rev. & Op. Inc. above high end of guide range,” Blackledge, who maintained a Buy rating on the stock, wrote in a note to investors. “Key revenue drivers include AWS, Adv., Subscription, & accelerating e-commerce growth (+29% y/y vs. +17% y/y in 2Q19) given continued COVID-19 demand surge.”
TipRanks data shows that overall analysts are in line with Blackledge’s bullish outlook on the stock. The Strong Buy consensus boasts 36 Buys versus 2 Holds and 1 Sell. (See Amazon stock analysis on TipRanks).