Amazon, which made a mammoth capital commitment of $5 billion in June last year, pumped the $443 million to its marketplace arm in India ‘Amazon Seller Service.’
The Seattle-based e-commerce giant Amazon has invested another $443 million into its Indian unit, doubling its India-unit’s authorized capital to $4.74 billion.
The company’s move comes just months after its rival company Flipkart received a massive funding of $4 billion from investors led by Japan’s SoftBank group, The Mint reported.
Amazon, which made a mammoth capital commitment of $5 billion in June last year, pumped the $443 million to its marketplace arm in India and it is at least the third such capital infusion this year.
Amazon India has issued paid-up capital of $2.7 billion towards Amazon Seller Services, which is far exceeding its initial commitment of $2 billion in July 2017. The Mint quotes the Tuesday’s regulatory filings with the Registrar of Companies.
“As India’s largest and fastest e-commerce player, and with a long term commitment to make e-commerce a habit for Indian customers, we continue to invest in the necessary technology and infrastructure to grow the entire ecosystem,” Mint quoted an Amazon India spokesperson. “We are delighted and humbled by the trust from our customers, to lead in India on things that matter to our customers in over four years of our business, while continuing to launch innovative India-first initiatives as well as completely new offerings like Echo, Prime and Prime Video.”
The company’s new move is also important as the company lost its festival season battle to Flipkart and also lagged behind the Indian company in terms of overall gross sales. However, Amazon rejected the claim as its methodology of calculating gross sales could be different from that of Flipkart and gross sales refer to the value of goods sold on a platform, not the net revenue.
Meanwhile, Flipkart is also gearing up for the race by re-launching its grocery segment under ‘Supermart’ and by aiming for big acquisitions.