The latest infusion is the third subsequent credit extension by Amazon Internet Services since 2017. The company had extended Rs 820 crore and Rs 370 crore in loan in 2017 and 2018 respectively.
Amazon Internet Services, Amazon’s subsidiary that undertakes the resale and marketing of Amazon Web Services’ (AWS) cloud services has extended a loan of Rs 390 crore to Amazon IT Services. The latest infusion is the third subsequent credit extension by Amazon Internet Services since 2017. The company had given Rs 820 crore and Rs 370 crore in loan in 2017 and 2018 respectively, business signals platform Paper.vc said citing regulatory documents.
“The (unsecured) loans have been extended under a revolving credit agreement between the two companies. It is unclear what role AISIPTL (Amazon Internet Services) performs in India although its pertinent to mention that Amazon’s public policy head for India sits on the board of AISIPTL,” Vivek Durai, Founder, Paper.vc said. Avinash Ramachandra is currently the director for public policy in India.
Amazon Internet Services posted a net profit of Rs 28.5 crore in FY18 while its revenue stood at Rs 1,235.4 crore vis-a-vis Rs 411.1 crore in the preceding fiscal year. Its revenue from the cloud-related services increased to Rs 1,040 crore from Rs 345.3 crore in the previous year, according to media reports.
In December 2017, the company had announced achieving full empanelment for the delivery of its cloud services by the Ministry of Electronics and Information Technology.
For its India marketplace arm Amazon Seller Services, Amazon saw losses piled up to Rs 6,287 crore in FY18 even as its revenue increased to Rs 5,018 crore in FY18, as per its ROC filings. On the other hand, Amazon’s wholesale arm Amazon Wholesale India’s revenue increased to Rs 12,224 crore in the last fiscal year.
However, for its arch-rival Flipkart, the losses are much higher. The group posted a whopping increase in its net loss by more than five times to Rs 46,901 crore in FY 2018 from Rs 8,771 crore in FY 2017, according to the ROC filings sourced by Paper.vc.
Flipkart Group’s revenue increased by a little over 1.5X to Rs 30,164 crore in FY18 from Rs 19,854 in the preceding fiscal year.
Comments from Amazon on the matter will be updated as and when received.
To be updated…