Global e-commerce giant Amazon Inc has invested $631 million (or ₹4,472.50 crore) in its Indian units Amazon Seller Services, Amazon Pay and Amazon Retail, filings with the Registrar of Companies showed.
Based on the filings, the e-commerce giant has invested ₹3,400 crore into Amazon Seller Services — its online marketplace arm, ₹900 crore into its payments platform Amazon Pay (India) and ₹172.50 crore into Amazon Retail India.
Amazon’s plans on how these three subsidiaries would utilize the latest funds, could not be independently ascertained.
The development comes after its rival Flipkart applied for government licences to set up a new local entity – Flipkart Farmermart – that will focus on food retail in India. It is expected that Flipkart may pump in ₹2,000 crore initially in the business and invest further as it scales up the supply chain, storage and logistics for the new business.
Flipkart’s plans show that the food and grocery space is emerging as the next battlefront for e-commerce companies.
In August, Kishore Biyani’s Future group announced that Amazon would pick up a 49% stake in Future Coupons, which holds about 7.3% stake in Future Retail through convertible warrants, the company that holds Biyani’s BigBazaar retail chain. Future Retail has a network of more than 1,500 stores across various formats, including 293 BigBazaar stores. Amazon had earlier also picked up a minority stake in supermarket chain More.
Even as Amazon Seller Services managed to cut losses, it was overshadowed by poor performance of its payments business. Amazon Pay India, which competes with the likes of Paytm, Flipkart’s PhonePe and Google Pay, recorded a manifold rise in losses. Its loss widened to ₹1,160.8 crore in FY19 from ₹334.20 crore in FY18, as per Tofler. Coupled with its other entities in India, Amazon’s losses in India in FY2018-19 were over ₹7,000 crore.
This article was first published on livemint.com.