Global e-commerce giant Amazon invests $631m in India business

Photo: Christian Wiediger/unsplash

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.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.