BENGALURU: Amazon has pumped in another Rs 2,900 crore into Amazon Seller Services, making its single-biggest infusion into its India marketplace during a year when rival Flipkart mopped up nearly $4 billion (about Rs 26,180 crore) in funding.
Amazon’s third capital infusion into its India business this year takes its total investment in Amazon Seller Services to Rs 17,840 crore ($2.6 billion), more than double Flipkart’s Rs 8,349 crore investment so far in its marketplace.
Amazon Seller Services has also passed a resolution to increase the authorised share capital from Rs 16,000 crore to Rs 31,000 crore or $4.7 billion. The move indicates that including the investment in other units like cloud services and payments business, the Seattle-based online retail giant is expected to go past investment commitment of $5 billion in India.
“As India’s largest and fastest-growing ecommerce player, and with a long-term commitment to make ecommerce a habit for Indian customers, we continue to invest in the necessary technology and infrastructure to grow the entire ecosystem. 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,” Amazon India said in a statement.
In June, Amazon pumped in Rs 1,680 crore into its India marketplace and last month, it put in another Rs 1,620 crore. With this, Amazon this financial year has vastly surpassed the Rs 2,010 crore it invested in its India marketplace in 2016-17 and is nearing its overall Rs 7,463-crore capital infusion made during 2015-16.
“This shows that Jeff Bezos’ commitment of $5 billion to its Indian business was not symbolic,” said Arvind Singhal, head of retail consultancy Technopak. “Amazon is clearly using its investments in three areas — creating fulfilment centres, spending more on customer acquisition through Prime, and strengthening its distribution infrastructure.”
Amazon has extensively grown the number of fulfilment, or delivery, centres to 41 across 13 cities in India. The company said that 90% of its more than 200,000 sellers use its logistics services. Amazon has been scaling up its warehousing and fulfilment network in the country to cater to specialised lines of business, including heavy and bulky categories such as furniture and large appliances, as well as for its entry into food retail and consumer goods.