Amazon India Gets Fresh INR 1,660 Cr Investment From US Parent

Ecommerce major Amazon’s US-based arm is investing INR 1,660 Cr in its Indian subsidiary Amazon India Seller Marketplace.

As per regulatory filings, Amazon Seller Services Private Limited has allotted 160 Cr equity shares to Amazon Corporate Holdings Private Limited, and Amazon.com.incs Ltd for INR 10 per equity share.

The fresh investment comes almost two months after the company raised INR 830 Cr from its parent company. With this investment, Amazon India has raised a total of INR 2,490 Cr (about $298 Mn) in the first five months of 2024. Earlier on January 19, Amazon US also invested INR 350 Cr in its fintech unit, Amazon Pay. 

The fund infusion comes on the heels of Amazon’s Indian competitor Flipkart bagging investment from its Singapore entity. In April, the Bengaluru-based ecommerce major raised INR 1,421 Cr (around $170 Mn) from its Singapore entity. It also raised another INR 924 Cr from its parent entity in March. Overall, the Walmart-backed startup has raised $282 Mn from its parent entity in 2024 so far. 

Besides Flipkart, SoftBank-backed Meesho has also received commitments of $275 Mn in funding from its investors. Earlier this month, the Bengaluru-based startup’s SEC filing revealed that it is raising around $275 Mn. However, the investors who will be participating in the funding round were not disclosed in the SEC filing. 

As per reports, Meesho is raising the fresh round of investment at a valuation of $3.9 Bn, a decline of 22% from its peak valuation of $5 Bn. 

At the heart of these fundraises is the rising competition in the Indian ecommerce space. With quick commerce players like Zomato’s Blinkit, Zepto, and Swiggy Instamart expanding their offerings beyond groceries, traditional ecommerce players are looking to guard their market shares.

Amazon’s fund raising spree also coincides with reports that the ecommerce major is set to enter the logistics space in India and introduce a new vertical called Amazon Shipping. 

The company is set to debut in this space by handling non-Amazon orders. It has reportedly already initiated collaborations with multiple direct-to-consumer (D2C) brands, logistics aggregators, and other businesses to kickstart this new venture.