Just over three months after pouring $260 Mn (INR 1,680 Cr) into Amazon Seller Services, ecommerce behemoth Amazon has infused another $250 Mn (INR 1,620 Cr) in the India-based seller operations unit to tackle competition from rival Flipkart. The latest investment comes at a time when the US-based company is gearing up to infuse fresh funding in its digital payments service, Amazon Pay.
According to its RoC filings, Amazon Seller Services raised the funding last month from Singapore-based Amazon Corporate Holdings and Amazon Mauritius. As part of the transaction, Amazon Seller Services issued 1.6 Bn equity shares to these two entities at a face value of $0.15 (INR 10) apiece.
Commenting on the development, a spokesperson from Amazon told TOI, “We remain committed to our India business with a long-term perspective to make ecommerce a habit for Indian customers and to invest in the necessary technology and infrastructure to grow the entire ecosystem.”
Recent Investments Made By Amazon To Bolster Its Indian Arm
The fresh infusion is part of the ecommerce giant’s $5 Bn overall commitment to India. This fund infusion reiterates Amazon CEO Jeff Bezos’ statement in April this year when he said that the ecommerce giant’s Indian arm Amazon is India’s most popular marketplace, indicating the company’s intention to keep fuelling in Indian investment.
Earlier in August, the ecommerce giant invested $62.7 Mn (INR 400 Cr) in its Indian logistics arm Amazon Transportation Service, ATS. A month prior to that, it had reportedly fuelled $20 Mn (INR 130 Cr) into digital payments entity, Amazon Pay India, as per regulatory filings.
Around the same time, the company received the final nod from the government for its proposed $500 Mn investment in food retail in India. The proposal states that the company will open a wholly-owned subsidiary in India to carry out the business. It is expected to launch the new food retail venture by Diwali.