Amazon has infused Rs. 230 crore in its Indian payments arm, Amazon Pay, according to documents filed with the Registrar of Companies (RoC), sourced from paper.vc. Amazon Pay has allotted 23 crore equity shares worth Rs 230 crore to existing shareholders — Amazon Corporate Holdings and Amazon.com. incs — on the right basis, reports said. The global e-commerce major added that the resolution was approved on June 28, 2018.
The move is expected to not only strengthen Amazon’s operations in the country but also help it compete with the likes of Flipkart’s PhonePe and segment leader, Alibaba-backed Paytm. The latest investment will also boost Amazon’s ambition of creating a wallet service that can operate beyond its marketplace to other online as well as offline merchants. In March, Amazon Pay’s India Head Mahendra Nerurkar said that the company will continue to invest aggressively in its digital payments arm over the next several months, implying that there could be additional rounds of investment in Amazon Pay in this year.
The fresh funding comes four months after the company made an investment of Rs 195 crore into its payments arm Amazon Pay. Prior to that, it had infused Rs 260 crore in October last year and Rs 130 crore into its payments entity in July. The Seattle based company also infused Rs 67 crore in May last year.
In a bid to attract more customers, Amazon Pay has been offering multiple cashback offers for shopping on its site. The firm has offered a cashback of up to Rs. 250 to customers last month, on the eve of its fifth anniversary in the country. In fact, Amazon is also offering cashbacks up to Rs.300 right now as a part of its Prime Day sale that kicked off on July 16. It will be interesting to see how the service fares in the coming months, especially when the usage of mobile wallets fell considerably, following the implementation of the Reserve Bank of India’s new KYC norms. Many players in the digital wallet segment were seen shifting their focus to other verticals in a bid to sidestep further losses. Most notably, MobiKwik was seen shifting their resources on creating a lending business.