According to recent filings received with the Registrar of Companies, American global giant Amazon has decided to infuse $250.3 million (Rs 1,620 crore) in its India-based seller operations Amazon Seller Services Pvt. Ltd.
The filings revealed that the ecommerce biggie was able to raise the capital from its Mauritius-based group entity Amazon.com.incs Limited and Singapore-based group entity Amazon Corporate Holdings. The filing also highlighted that the investment was raised on September 15 this year by allocating 162 crore equity shares with the face value of Rs 10 apiece.
The latest investment infusion came just three months after Amazon India’s seller services raised $260 million (Rs 1,680 crore) in July, 2017.
The funding has come in Amazon’s way when it is in the midst of carrying out the third leg of its festive season sales.
In June, it was revealed that the US e-commerce biggie Amazon now has more sellers on its Indian e-commerce site than the country’s homegrown e-commerce giant, Flipkart. According to latest figures released by Amazon, it has doubled the number of merchants on its e-commerce platform from one lakh to two lakhs in less than a years period.
The global e-commerce major took a total of four years to reach the two lakhs merchants milestone in India.
In the past four years that Amazon has been India, it has made it quite clear that the Indian subcontinent is its most important market outside the US. This is mainly due to the fact that it lost out on a chance to make a mark in China courtesy its homegrown e-commerce giant Alibaba driving it out of its country. This is why the online retail giant turned to Asia-Pacific’s fastest-growing e-commerce market, India.
If one would think rationally, one would observe that even though Flipkart is currently number one in Indian e-commerce market, it is Amazon which has a broader ecosystem in the country when it comes to the various ways people interact with it. For instance, Flipkart has nothing to offer to compete with Amazon’s Prime Video service. This is not to say that Flipkart has never tried. The homegrown giant did launch a music download service with its digital store Flyte a few years ago but ended up shutting it down within a year of its operations.
Amazon, which now boosts of having more sellers on its Indian e-commerce site than the country’s homegrown e-commerce giant, had recently announced that it would continue its investment streak in the Indian subcontinent in expanding infrastructure and bringing in innovative solutions to better consumer and seller experience as it aims to overthrow Indian e-commerce leader Flipkart from its throne and become the number one e-commerce website in the South Asian country. The giant has committed a whopping US $5 billion in investments in the Indian subcontinent.
This development was first reported in VCCircle.