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Amazon invests Rs 1,350 crore in India unit; second infusion in the year

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E-commerce player Amazon has further invested Rs 1,350 crore (~200 million) in its India unit, registrar of companies data accessed by Medianama showed.. The development was first reported by the Economic Times. The Indian subsidiary. Amazon Seller Services, allotted 150 crore shares of face value of Rs 10 to Amazon Asia-Pacific Resources Private Limited and Amazon Eurasia Holdings.

Amazon added funds worth Rs 1,980 crore (~ $290 million) into its Indian business unit in February.  In 2014, Jeff Bezos, founder and CEO of Amazon, pledged $2 billion in India, to support its growth and improve the customer & seller experience in the country. With this, Amazon has invested Rs 8,618 crore in India.

The company continues to underscore that India is a key focus. In a recent call with analysts CFO Brian Olsavsky said that Amazon will be increasing investment in India “on all fronts”.

Cloudtail and FDI in ecommerce regulations

Amazon India, however, has to deal with ecommerce FDI guidelines , which would not permit more than 25% of the sales affected through its marketplace from one vendor or their group companies. Amazon’s biggest seller is Cloudtail, a joint venture setup by Amazon and Infosys co-founder NR  Narayana Murthy’s Catamaran Ventures. According to some reports, Cloudtail accounts for 40% of sales on Amazon India.

Phil Hardin, director of investor relations said that the company was “happy to operate in any regime.. So frankly, the more clarity, the better,” he said, in a question to India’s regulatory environment and Cloudtail.

Amazon has rolled out Tatkal to 25 cities in India

Amazon.in has rolled out Amazon Tatkal to 25 cities across India. Tatkal is a studio-on-wheels offering a suite of services to sellers, including registration, imaging and cataloging services, and basic seller training. The feature was launched in February and started in Delhi. Olsvsky said that this will be part of Amazon’s strategy to get more sellers on its platform in the country.

Amazon India’s financials

From the ROC data, Amazon Seller Services reported a revenue of Rs 1,022.1 crore for the year 2014-15, growth of 108.46% from the previous year. However, losses widened to Rs 1,723.7 crore during the period from the loss of Rs 321.3 crore.

Expenses also shot up during the year to Rs 2745.7 crore compared to Rs 490.3 crore compared to the preceding year. Employee benefit expenses stood at 7% of total expenses while other expenses stood at 93%.

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    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ