Continuing with the bullish sentiment in India, Amazon has further infused Rs 1620 crore in the Indian e-commerce arm, Amazon Seller Services, Registrar of Companies documents showed. This was first reported by the Economic Times. The capital came in from Amazon Singapore and Amazon Mauritius.
The investment comes at a time when its main rival, Flipkart, has been pumping in funds into different parts of its operations. Flipkart raised funds of $2.5 billion from the Softbank Vision Fund and Tencent, Microsoft and eBay in August. So far it has invested in:
- $500 million in its payments am PhonePe.
- Rs 961.4 crore in Instakart Services Pvt. Ltd., which operates its logistics arm eKart.
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.
Meanwhile, Amazon has been investing in its logistics and payments services as well.
- Amazon Pay increased its share capital from Rs 400 crore to Rs 2000 crore. Amazon has already infused funds into the company twice this year: Rs 130 crore ($20.17 million) in July, and Rs 67 crore ($10.46 million) in May.
- Amazon Transportation Services (ATS) got an infusion Rs 207 crore.
The latest investment is significant as Amazon and Flipkart are locked in a battle for festive season sales in the country. Flipkart claimed that sales doubled from last year and that it accounted for at least 70% of total e-commerce sales in India during its five-day Big Billion Days sale, as indicated by this Mint report. Meanwhile, Amazon did not comment on its sales.
Shopper’s Stop investment
Amazon also acquired 5% stake in Shopper’s Stop for Rs 179.25 crore. Shoppers Stop will be using the funds raised through this minority stake sale to further expand its physical and online retail biz, plus it has tied-up with Amazon Seller Services Pvt. Ltd. (Amazon’s India unit) to sell its in-house brands on the e-commerce marketplace through a dedicated microsite.