Amazon is investing $2 billion in its year-old India operations

Despite the fact that Amazon's India marketplace launched just over a year ago, Amazon announced Wednesday that it's pouring an additional $2 billion into the operation.

The announcement comes a day after Indian e-commerce startup Flipkart — an Amazon rival founded by former Amazon executives — raised $1 billion in new funding.

In a statement released by Amazon, Jeff Bezos says he sees "huge potential" in Indian e-commerce, a base that continues to grow:

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Amazon says that it's India's biggest e-commerce site, but it's more than a coincidence that the news comes on the heels of Flipkart's funding success.