US e-commerce giant Amazon has infused Rs 1,660 crore into its Indian arm Amazon Seller Services, according to regulatory documents filed with the RoC sourced through Private Circle. This is the second time in five months that Amazon has pumped money into its Indian arm, as competition in the e-commerce space intensifies in the country.
The US parent had earlier invested Rs 830 crore in its Indian entity in February. Last year, Amazon’s CEO Andy Jassy had announced that the company will invest $15 billion in India by 2030, taking its total investment in the country to $26 billion. The board of Amazon seller services approved the allotment of 1.6 billion shares of Rs 10 each on April 15 to its parent entity, as per the filing.
This comes shortly after US retail giant Walmart infused $600 million into Flipkart, where it owns a more than 80% stake, as part of its $1-billion fundraise plan. Other internal stakeholders and a few external investors put in the balance $400 million. Flipkart is expected to use the money to expand its operations, strengthen its supply chain and bolster its tech capabilities.
With the expansion of quick-commerce platforms into traditionally e-commerce categories such as electronics and home-care products, and strengthening of local rivals such as Meesho and Flipkart, Amazon is fighting to maintain market share in this rapidly evolving business.
It recently launched Amazon Bazaar, which sells low-priced and unbranded fashion and lifestyle items largely under Rs 600, to take on the likes of Meesho, which is currently thriving in this category. Meesho is also in talks to raise $300 million from a group of investors, including Tiger Global and SoftBank, as per sources, to bolster its position in the market.
