- Meenakshi Kumar |
US e-tail giant Amazon has infused fresh capital to the tune of Rs 2,600 crore into its India unit, Amazon Seller Services, to strengthen the war-chest of the company against domestic rival Flipkart.
The development amid buzz that rival Flipkart is close to sealing a mega deal worth over USD 12 billion with US based retail giant Walmart.
According to filings to Corporate Affairs Ministry, Amazon holdings has made the Rs 2,600 crore investment in the Indian marketplace unit.
The board of directors of Amazon Seller Services passed the resolution at their meeting on April 26, 2018.
In January this year, Amazon Seller Services had received a fund infusion of Rs 1,950 crore from the parent company.
According to the company as India's fastest growing e-commerce player with a long-term commitment to make e-commerce a habit for Indian customers, it will continue to invest in the necessary technology and infrastructure to grow the entire ecosystem.
The fresh funds will provide more arsenal to Amazon, which has been aggressively investing in expanding infrastructure and adding solutions to enhance consumer and seller experience.
Amazon founder Jeff Bezos has committed investments to the tune of USD 5 billion for the Indian market.
During a recent investor call, Amazon CFO Brian Olsavsky had mentioned that the company would continue to invest in India with both sellers and customers here, even though as the US e-tailing giant had registered a loss of USD 622 million from international operations in the first quarter of 2018.
The American company has also been pumping funds into its other entities in India, including Amazon Pay and wholesale business. These investments have been directed towards building warehouses, strengthening logistics and increasing product assortment.