Amazon injects fresh capital of Rs 2,300 crore in India marketplace unit to meet demand surge

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Updated: Jul 08, 2020 10:17 AM

Amazon founder and CEO Jeff Bezos, who was on a visit to India earlier this year, announced an additional $1 billion of investment in the country taking the company’s total India investment commitment to $6 billion.

AmazonThe fresh capital infusion comes at a time when Amazon has ramped up hiring in the country to meet the surge in consumer demand

Amazon has infused a fresh Rs 2,310 crore in India marketplace entity Amazon Seller Services. The investment was routed via Singapore-based Amazon Corporate Holdings and Mauritius-based Amazon.com.incs, documents sourced from business intelligence platform Tofler showed.

In February, Amazon had pumped in Rs 2,208 crore in capital in the entity. Amazon Seller Services received Rs 3,400 crore from its US parent in October 2019.

In June last year, Amazon injected Rs 2,800 crore in the company. The e-commerce major infused about Rs 7,250 crore in its India marketplace in three tranches in 2018.

Amazon founder and CEO Jeff Bezos, who was on a visit to India earlier this year, announced an additional $1 billion of investment in the country taking the company’s total India investment commitment to $6 billion.

The fresh capital infusion comes at a time when Amazon has ramped up hiring in the country to meet the surge in consumer demand.

As coronavirus cases are surging in the country, consumers are increasingly resorting to online shopping to meet their consumption needs. After e-commerce firms resumed full operations in the country, companies registered a spike in consumer search for products like electronic items, home appliances, casual wear and other work-from-home enablers.

Akshay Prabhu, director, customer service at Amazon India, had last month said that the firm estimates “customer traffic to scale up over the next six months with the onset of Indian and global holiday seasons”. Amazon recently also concluded a seven-day sale. Additionally, the company has initiated programmes to expand the network of sellers like ‘local shops on Amazon’ in the country amidst rise in competition with the entry of JioMart.

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