Amazon Pay, the digital wallet service from Amazon, has increased its share capital by five times to Rs 2000 crore, reports the Press Trust of India. Earlier the wallet company had an authorized share capital of Rs 400 crore, Registrar of Companies data showed.
The authorized share capital is the number of stock units that a company can issue and is often not fully used by in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly.
This is significant as Amazon Pay is looking to increase the number of services it will offer. It primarily works as a wallet service and as a faster refund option along with cash backs. The balance in Amazon Pay can also be used for other apps/services like AbhiBus, Faasos, Justickets, Haptik, Housejoy, Box8, Byjus, Café Coffee Day outlets among others. In August, it started beta testing mobile recharges in India.
In July, Amazon invested an additional Rs 130 crore ($20.17 million) into Amazon Pay. The investment was made in June through Singapore-based Amazon Corporate Holdings Pvt. Ltd. and Amazon Mauritius. This after infusing Rs 67 crore ($10.46 million) into Amazon Pay, in May this 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.
During the company’s Q1 2017 earnings call, CEO Jeff Bezos continued to be bullish in 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 April this year, Amazon India received a wallet license from the Reserve Bank of India (RBI), which enabled it to do away with the two-factor authentication system for Amazon Pay. Note that Amazon India already had access to a semi-closed wallet system, following its investment in e-gifting platform QwikCilver Solutions in 2014. QwikCilver had secured a five-year prepaid mobile wallet license from RBI in August 2013.