E-commerce giant, Amazon, invested Rs 1,600 crore in the firm’s India business, media reports said citing regulatory filings. This marks the second time the company has infused funds into Amazon Seller Services, it’s India arm, in a period of five months.
The development comes when the e-commerce industry is seeing major competition amongst themselves to control the market share in India, reported Moneycontrol.
The regulatory filings of the firm revealed, “...hereby accorded for allotment of 1,66,00,00,000 (One Hundred Sixty Six Crore) equity shares of INR 10/- (Rupees Ten Only) each aggregating to INR 16,60,00,00,000/- (Rupees One Thousand Six Hundred Sixty Crore Only) to the existing shareholders on right basis (to Amazon Corporate Holdings Private Limited and Amazon.com.incs Limited.” The filings were dated April 15, 2024.
Notably, Walmart recently poured in $600 million into Flipkart, the firm’s direct rival to Amazon. The last fund infusion in the Indian business of Amazon happened in February this year.
Elaborating on the firm’s plans ahead, the report quoted Andy Jassy, CEO, Amazon, and said that the company will invest a surplus of $15 billion in India by the end of the decade. This will take the overall investment commitment of the e-commerce giant in India to $26 billion, including the $12.7 billion promised by Amazon Web Services (AWS) for investment in India by end of 2030.
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Notably, Flipkart and Amazon are vying to capture the ever-growing market in India. Other e-commerce players like Meesho are also aiming for a share in the country’s e-commerce marketplace. Recently, Amazon also launched Bazaar, which will give direct competition to the Softbank-backed e-commerce platform, Meesho.
According to a report by AllianceBernstein, released earlier this year, Flipkart emerged as the market leader in India in the 2022-23 fiscal year (FY23), as it controlled a 48 per cent share in the e-commerce segment in the country. At the same time, the report outlined Meesho as the fastest growing e-commerce platform in the country.