Amazon, the global e-commerce giant, has infused INR 1,600 crore into its India entity, regulatory filings showed, at a time when ecommerce companies are battling it out to grow their market share and be one up against competitors in a constantly growing market.

This is the second instance where Amazon has pumped in money into Amazon Seller Services, its arm in India, in a span of five months. This comes shortly after Walmart invested USD 600 million into Flipkart, the homegrown rival to Amazon.

“...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," said the regulatory fillings dated April 15.

The fresh capital infusion into Amazon Seller Services, the India arm of the e-commerce major, comes shortly after it had received INR 830 crore from the global entity in February earlier this year.

The fresh investment is in line with Amazon’s plans for India. Amazon CEO Andy Jassy said the Seattle-based tech titan would invest an additional USD 15 billion in India by 2030, taking its total investment commitments in the country to USD 26 billion. This includes USD 12.7 billion that Amazon Web Services (AWS) said it would invest in India by the end of the current decade.

The American firm's investment into its India unit comes weeks after Walmart, the US-based retailer, infused USD 600 million into Flipkart, the homegrown e-commerce rival as both companies look to tap into the increasing India potential.

Flipkart and Amazon are locked in fierce competing in India, looking to bag the bigger share of a growing market. To be sure, the two are not just fighting against each other. They are also facing competition from Meesho which is in the midst of raising USD 500-650 million. The new investment also comes as Amazon recently launched Bazaar which will directly compete with SoftBank-backed Meesho.

India’s e-tailing sector is poised to experience a fivefold growth, surging from USD 59 billion in 2022 to an estimated USD 300 billion by 2030, fuelled by value-seeking ‘mass’ consumers.

Amazon CEO Andy Jassy said in the 2023 shareholder letter that the company sees meaningful progress in emerging geographies, including India, as it continues to expand selection and features and move toward profitability.

Amazon has said that over 7 billion Amazon items arrive the same day or the next day in 2023, and it expects even faster delivery times in 2024.

Article Sources – MoneyControl, IANS