Amazon Invests Rs 1,600 Crore into Indian Market for E-Commerce Lead
According to regulatory filings, media reports reveal that Amazon, the e-commerce behemoth, has injected Rs 1,600 crore into its India business, Amazon Seller Services. This marks the second instance of the company bolstering funds into its Indian arm within a span of five months. This move is amidst intensified competition within the e-commerce sector, as companies vie for dominance in the Indian market.
The regulatory filings of the firm revealed, “hereby accorded for allotment of 1,66,00,00,000 (One Hundred Sixty-Six Crore) equity shares of INR 10/- (Rupees Ten Only) each aggregating to INR 16,60,00,00,000/- (Rupees One Thousand Six Hundred Sixty Crore Only) to the existing shareholders on right basis (to Amazon Corporate Holdings Private Limited and Amazon.com.incs Limited”, The filings were dated April 15, 2024.
Notably, Walmart recently injected $600 million into Flipkart, which is Amazon's direct competitor. The most recent infusion of funds into Amazon's Indian operations occurred in February of this year. Discussing the company's future plans, the report cited Andy Jassy, CEO of Amazon, stating that the company aims to invest an additional $15 billion in India by the end of the decade. This commitment will bring the e-commerce giant's total investment in India to $26 billion, including the $12.7 billion pledged by Amazon Web Services (AWS) for investment in India by the end of 2030.
Significantly, Flipkart and Amazon are competing to seize the continuously expanding market in India. Additionally, other e-commerce entities such as Meesho are also striving to carve out a portion of the country's online marketplace. Not long ago, Amazon introduced Bazaar, directly challenging the Softbank-supported e-commerce platform, Meesho.
As per a report earlier this year, Flipkart took the lead as the dominant player in India during the fiscal year 2022-23 (FY23), commanding a 48 percent share of the e-commerce market in the country. Concurrently, the report highlighted Meesho as the e-commerce platform experiencing the most rapid growth in India.
