BENGALURU: Amazon has injected another Rs 2,900 million into Amazon Seller Services, becoming its largest investment in its Indian market for a year, when its rival Flipkart collected about 4,000 million dollars (about 26,180 crore) in funds.
Amazon’s third injection of capital into its Indian business this year brings its total investment in Amazon Seller Services to Rs 17,840 crore ($ 2.6 billion), more than double the investment of Flipkart Rs 8,349 crore so far in its market.
Amazon Seller Services has also approved a resolution to increase the authorized share capital from Rs 16,000 crore to Rs 31,000 crore or $ 4,7 billion. The measure indicates that, including investment in other units such as cloud services and payment businesses, the Seattle-based online retail giant is expected to exceed the $ 5 billion investment commitment in India.
“As the largest and fastest growing e-commerce player in India, and with a long-term commitment to make e-commerce a habit for Indian customers, we continue to invest in the technology and infrastructure necessary to grow everything. We are delighted and moved by the confidence of our clients, to lead in India what matters to our clients in more than four years of our company, while we continue to launch innovative initiatives in India, as well as completely new offers such as Echo ,.
In June, Amazon injected Rs 1,680 crore into its Indian market and last month put another Rs 1,620 crore. With this, Amazon this fiscal year has far exceeded the Rs 2.010 crore that invested in its Indian market in 2016-17 and is approaching its general capital infusion of R $ 7,463 crore during 2015-16.
“This shows that Jeff Bezos’ commitment of $ 5 billion for his business in India was not symbolic,” said Arvind Singhal, head of retail consultancy Technopak. “Amazon is clearly using its investments in three areas: creating order fulfillment centers, spending more on acquiring customers through Prime and strengthening its distribution infrastructure.”
Amazon has significantly increased the number of fulfillment or delivery centers to 41 in 13 cities in India. The company said that 90% of its more than 200,000 vendors use their logistics services. Amazon has been expanding its storage and order fulfillment network in the country to supply specialized business lines, including heavy and bulky categories, such as furniture and large appliances, as well as for its entry into the retail sale of food and consumer goods. .