Amazon has invested a further Rs 1680 crore into Amazon Seller Services Pvt. Ltd. (Amazon’s India unit), as per regulatory documents filed with the Ministry of Corporate Affairs that MediaNama has reviewed. This was first reported by ET. The investment was made in June through Singapore-based Amazon Corporate Holdings Pvt. Ltd. and Amazon Mauritius. This latest investment is part of the $3 billion the company committed to infusing into its India unit in June last year.
Currently, Amazon’s total investment commitment in India stands at $5 billion: the $3 billion announced in June 2016, plus the $2 billion investment announced back in July 2014, which the company has already completed in phases over the past two years.
Since the announcement of the additional $3 billion investment in June 2016:
- Amazon invested Rs 1,350 crore in its India unit, in June 2016.
- Invested Rs 115 crore in its wholesale business in India called Amazon Wholesale (India), in September 2016, which was set up in 2013 and runs the company’s B2B portal as well as acts as a distributor of exclusive products on Amazon India.
- Made a fresh investment of Rs 2010 crore into its India unit, in November 2016.
- The India unit’s payments portal Amazon Pay received funds worth Rs 67 crore from Amazon Corporate Holdings and parent company Amazon Inc, in May 2017.
- Amazon India’s logistics arm Amazon Transportation Services (ATS) had received Rs 207 crore worth of funding, in June this year, which was the second tranche of funds infused into ATS in less than a year, after the Rs 67 crore it had received in September 2016.
Amazon’s continued focus on India
— Jeff Bezos (@JeffBezos) June 25, 2017
During the company’s Q1 2017 earnings call, CEO Jeff Bezos continued to be bullish on India and had also said that the 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.”
In India, Amazon has been increasingly focusing on logistics off late: In May this year, Amazon 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), with a focus of larger appliances and furniture. Then there is the investment in its India logistics arm that we have mentioned earlier. Last year, the company 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.