Amazon and Walmart-backed Flipkart together command close to 80% market share in the country's e-commerce sector, analysts said
E-commerce giant Amazon has infused Rs 1,715 crore ($242.19 million) in fresh capital in two of its India entities — Amazon Pay India and Amazon Wholesale (India).
While Amazon Pay received Rs 1,355 crore, Amazon Wholesale got Rs 360 crore in funding, according to RoC filings sourced from business signals platform Paper.vc.
The funding details came out a day ahead of CEO Jeff Bezos’ expected visit to India. Amazon is hosting a two-day event ‘Smbhav’ in New Delhi starting January 15.
Bezos’ India visit will be marked by trader protests, led by CAIT (Confederation of All India Traders) across 300 cities. CAIT represents seven crore traders across the country. All India Mobile Retailers Association and All India Consumer Products Distributors Federation are other organisations participating in the protest.
Traders have alleged that the deep-pocketed companies are weaning away customers from small and medium businesses through predatory pricing. The firms have also failed to adhere to the foreign direct investment (FDI) norms in e-commerce mandated by the government, they said.
In a setback to Amazon and Flipkart, the Competition Commission of India on Monday ordered its director general to investigate the companies on alleged charges of deep discounting, exclusive arrangements and preferential listing of sellers. The probe order was launched following a plea by Delhi Vyapar Mahasangh.
In October last year, Amazon Seller Services, the marketplace entity of Amazon India, had received Rs 3,400 crore in fresh capital from its US parent. In June, 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.
The latest investments in Amazon Pay and Amazon Wholesale India have been routed through Singapore-based Amazon Corporate and Mauritius-based Amazon.com.inc , the documents showed.
In 2014, Bezos had announced an investment of $2 billion in India while in 2016, the CEO said the firm would invest an additional $3 billion in the country, taking the total tally to $5 billion. According to media reports, Bezos is expected to meet Prime Minister Narendra Modi and other key ministers during his trip.
In July last year, the Seattle-based firm had said it was hopeful of working with the Indian government to seek a “stable predictable policy” that would facilitate the company to continue with its investments in technology and infrastructure. The government’s revised norms on foreign direct investment (FDI) in e-commerce came into effect on February 1, last year. The revised norms bar e-commerce firms having foreign investment like Flipkart and Amazon from selling products of the entities in which they hold stake or whose inventory they control. It also disallowed them from asking a seller to sell any product exclusively on their platforms. Separately, the government is also in the process of formulating an e-commerce policy.
Amazon and Walmart-backed Flipkart together command close to 80% market share in the country’s e-commerce sector, analysts said