Amazon India (Amazon Seller Services Pvt. Ltd) has received a massive infusion of Rs 2600 crore from its parent Amazon Inc. (US), reports The Economic Times. The publication found out about the development in the documents filed by the company at the Ministry of Corporate Affairs (MCA).
In its earnings call last month, CFO Brian Olsavsky had said that the company will continue to invest in India where it is seeing great progress with both sellers and also customers. A week prior to that, In his letter to shareholders, Jeff Bezos highlighted India as a ‘milestone’, stating that Amazon.in is the fastest growing marketplace in India. He also highlighted that Prime added more members in India in its first year than any previous geography in Amazon’s history.
Amazon’s previous investments
Note that, Amazon has a total investment commitment in India of $5 billion (approx Rs 32600 crore). $3 billion the company committed in June last year, plus $2 billion investment announced back in July 2014, which the company has already exceeded. Following are its previous investments:
- In January, Amazon India received Rs 1950 crore from its parent Amazon Inc. (US) and Amazon Singapore.
- In November 2017, Amazon infused Rs 2900 crore in Amazon India.
- It 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 arm Amazon Pay received funds worth Rs 67 crore in May 2017, followed by Rs 130 crore in July, and Rs 260 crore in October.
- Amazon India’s logistics arm received Rs 130 crore this month, which was the third tranche of funds infused into the logistics company in about a year after Rs 207 crore worth of funding in June this year, and Rs 67 crore in September 2016.
- In October 2017, it infused Rs 1620 crore in Amazon Seller Services through its Singapore and Mauritius subsidiaries, and before that, the unit received Rs 1680 crore in July.
Amazon’s main rival is Flipkart which is reportedly about to close its acquisition by US retail major Walmart. In terms of Flipkart’s capital strength, Flipkart India Private Limited got a massive infusion of Rs 4,472 crore from its Singapore parent in March. In August last year, Flipkart raised funding to the tune of $2.5-2.6 billion from SoftBank’s $100 billion Vision Fund, and $1.4 billion from Microsoft, eBay and Tencent in April. In October 2017, Flipkart committed $500 million in its payments am PhonePe, which is an addition to $75 million funds infusion Flipkart had made in PhonePe since acquiring it in 2015. And then it injected Rs 961.4 crore in Instakart Services Pvt. Ltd., which operates its logistics arm eKart.