Amazon India (Amazon Seller Services Pvt Ltd) has received a massive infusion of Rs 2,200 crore from Amazon Corporate Holdings Pvt Ltd and Amazon.com Inc Ltd, reports The Economic Times. Amazon Inc had pumped Rs 2700 crore in Amazon India in August.
The current investment is the fourth tranche of investment in the company, this year, taking the total investment that company received in 2018, to Rs 9,450 crore. With this, the total money pumped into Amazon India goes upto Rs 27,290 crore, inching closer to the mark of $5 billion (Rs 35,255 crore) investment that Jeff Bezos, Amazon CEO, had committed in 2016.
The ET report added that Brian T Olsavsky indicated India as the most important market for Amazon outside the US. He also cited a late Diwali, for the company, this year for slower Q3 international growth.
Amazon reported a net income of $2.88 billion in the quarter ended September 2018, up 1026% compared to $256 million in the same quarter last year. Its total operating expenses grew from $43.3 billion in Q3 2017 to $52.8 billion in this quarter. The total non-operating income swelled to losses of $334 million, up from losses of $31 million in the same quarter of 2017. Its total income before taxes was $3.39 billion, up 972% from $316 million in the same quarter last year.
Diversification of Amazon India’s services:
- In November, Amazon Prime Video launched its Prime Video website and the app in a Hindi interface. In the same month, Amazon Prime Video also announced the launch of 30 more originals in multiple Indian languages. It also added Kannada movies to its library after Hindi, Tamil, Telugu, Marathi, Bengali and Hindi content.
- In October, Amazon introduced payments via QR codes at retail stores, three years after Paytm offered the same thing.
- In September, Registrar of Companies filing by Amazon revealed that it might also start offering life, health and general insurance products.
- In June, Amazon infused Rs 10.5 crore in its Indian retail food arm – Amazon Retail India.
- In May, Amazon India rebranded Amazon Now to Prime Now, and expanded its product category along with new time slots for the users.
- In February, Amazon launched Prime Music in India. Prime Music has content deals with music label such as T-Series, Venus Music, Sony Music, Saregama, and Zee Music Company and is available on Google Play store and iOs.
Competition from Flipkart
Flipkart invested Rs 3,463 crores into its online marketplace Flipkart Internet, in September this year. In August, Singapore-based Flipkart Payments, which is a subsidiary of the e-commerce giant infused Rs 451.66 crore into PhonePe.
Flipkart is attempting to diversify into refurbished goods with newly-launched marketplace 2GUD, after shutting down operations of eBay.in. The e-commerce giant is also eyeing grocery service market; in August, it launched Supermarket in Bangalore, after a failed bet on Nearby, which it shut down 2 years ago.