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Amazon India’s logistics arm gets Rs 207 crore to expand warehouse network

Amazon India’s logistics arm Amazon Transportation Services (ATS) has received Rs 207 crore worth of funding from Singapore-based Amazon Corporate Holdings and Amazon Malaysia, reports The Economic Times. The report also mentions that this is the second tranche of funds infused into the company’s logistics arm in less than a year: it had received Rs 67 crore in September 2016.

This news comes at a time when Amazon is increasing its reach by adding new fulfilment centres across the country, and steadily expanding its grocery and household item delivery service, Amazon Pantry:

Last month, the company said it is doubling its storage capacity in the country by setting up seven new fulfillment centres by the end of the current quarter (Q2 2017). The new fulfillment centres will be set up in Telangana, Haryana, Maharashtra, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh, and are likely to be allocated for larger appliances and furniture, as indicated by Amazon India’s VP of customer fulfillment, Akhil Saxena to TOI. Last year, Amazon India had opened six fulfillment centres in Chennai, Mumbai, Delhi and Jaipur to expand its services. At the time it had mentioned that 80% of sellers in India used its fulfillment services. In all, the company has increased its fulfillment capacity for sellers by 26% this year.

The company has also expanded the services of Pantry to 7 more cities to now be available for a total of 34 cities. The service was launched in July last year in Hyderabad, by the end of January 2017 it had expanded to 14 cities, and over the next three months till May 2017 it had spread the service to 13 more cities. Then there its other grocery delivery service called Kirana Now (Amazon Now), which delivers perishable items ordered within two to four hours. It was launched in Bengaluru last year and is currently available in Delhi NCR, Mumbai , Bangalore and Hyderabad.

Recently, the company also got the nod from the Department of Industrial Policy and Promotion (DIPP) to stock and sell local grocery produce online. It had filed an application in February to make an investment of $500 million for the online food retailing.

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Amazon continues to pump funds into India operations

– The India unit’s payments portal Amazon Pay received funds worth Rs 67 crore from Amazon Corporate Holdings and parent company Amazon Inc, last month.

– In December last year, Amazon Wholesale (India), the B2B arm of Amazon India had received a capital funding of Rs 100 crore. The wholesale unit named AmazonBusiness sells food and beverages, stationery, healthcare and personal care products.

– In the same month, Amazon India also received Rs 2010 crore from its main unit, taking the overall investment in India to Rs 7,000 crore in FY17.

– During the company’s Q1 2017 earnings call, CEO Jeff Bezos continued to be bullish on India and had also said that th India unit is the fastest growing marketplace and the company “will keep investing in technology and infrastructure while working hard to invent on behalf of our customers and small and medium businesses.”

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