Amazon Infuses Rs 830 Crore in Indian Arm

New Delhi, Feb 12 (KNN) Amazon Seller Services, the Indian branch of the global e-commerce giant, has announced a significant investment of Rs 830 crore (approximately USD 100 million) from its parent entity in the United States.

According to regulatory filings, the company issued 830 million shares valued at Rs 10 each to two Amazon entities.

While the majority of shares were allotted to Amazon Corporate Holdings Pvt Ltd, a smaller portion was also issued to Amazon.com.inc Ltd.

This infusion of funds aligns with Amazon's strategic vision for India.

CEO Andy Jassy recently reaffirmed the company's commitment to the Indian market, stating plans to invest an additional USD 15 billion by 2030, bringing total investment commitments to USD 26 billion.

This includes significant investments by Amazon Web Services (AWS), totalling USD 12.7 billion by the end of the decade.

The move by the American e-commerce giant follows a similar investment trend in India's competitive market.

Just weeks prior, Walmart injected USD 600 million into Flipkart, Amazon's domestic rival, highlighting the fierce competition for market share.

In response to Flipkart's initiatives, such as the launch of a loyalty program targeting high-value customers, Amazon introduced its own shopping-only Prime tier.

This strategic manoeuvre aims to capture the more lucrative segment of customers, known for their higher average order values.

Despite increasing competition and strategic investments, Amazon Seller Services reported widening losses in FY23, reaching Rs 4,854 crore, while experiencing marginal revenue growth of around 3 percent year-on-year, totalling Rs 22,198 crore.

The latest funding infusion underscores Amazon's ongoing commitment to India's burgeoning e-commerce landscape, as it continues to strive for dominance alongside its competitors.

(KNN Bureau)