Amazon has invested a further Rs 341 crore into its Indian subsidiary Amazon Wholesale (India), which is the B2B arm of Amazon India, reports ETtech. The investment was made in May through Singapore-based Amazon Corporate Holdings Pvt. Ltd. and Amazon Malaysia.
Earlier this week, Amazon infused an additional Rs 1680 crore into Amazon Seller Services Pvt. Ltd., as part of the $3 billion the company committed to infusing into its India unit in June last year.
This latest round of investment is the fourth tranche of funds infused into the wholesale unit over the past 12 months or so, bringing the total investment to Rs 716 crore. The earlier investments were:
- Rs 115 crore invested in June 2016.
- Rs 160 crore invested in September 2016.
- Rs 100 crore invested in December 2016.
Amazon Wholesale (India) was set up in 2013 and runs the company’s B2B portal AmazonBusiness.in, as well as acts as a distributor of exclusive products on Amazon India. The wholesale unit currently serves various small and medium sized businesses (SMBs) in Bangalore and Mangalore through the portal, which lists items like office products, stationery, housekeeping supplies, kitchen, health & personal care supplies and food & beverages.
Amazon’s continued focus on India
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:
- Last month, Amazon India’s logistics arm Amazon Transportation Services (ATS) had received Rs 207 crore worth of funding, 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.
- While in May this year, Amazon said it is doubling its storage capacity in the country by setting up seven new fulfilment centres by the end of the current quarter (Q2 2017), with a focus of larger appliances and furniture.
- And last year, the company had opened six fulfilment 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 fulfilment services. In all, the company has increased its fulfilment capacity for sellers by 26% this year.