Amazon infuses Rs 1,125 cr into India unit ahead of festive sales


Team Udayavani, Sep 29, 2020, 5:09 PM IST

New Delhi: US-based e-commerce giant Amazon has infused fresh capital to the tune of Rs 1,125 crore into one of its India units, Amazon Seller Services, according to regulatory documents.

The fresh infusion will provide more ammunition to Amazon to compete aggressively against Walmart-owned Flipkart and billionaire Mukesh Ambani-run Reliance Industries’ JioMart in the upcoming festive season.

Amazon Corporate Holdings Private Limited, Singapore and Amazon.com Inc Limited, Mauritius have pumped in Rs 1,125 crore into Amazon Seller Services, regulatory documents sourced by business intelligence platform Tofler, showed.

Amazon Seller Services allotted equity shares to these entities for the said transaction on September 17, 2020.

Amazon did not respond to queries.

In June this year, Amazon had pumped in fresh capital to the tune of Rs 2,310 crore into Amazon Seller Services. In January this year, Amazon founder Jeff Bezos had announced USD 1 billion (over Rs 7,000 crore) investment in India to help bring small and medium businesses online. Previously, the online retail giant had committed USD 5.5 billion investments in India, one of Amazon’s most important markets outside of the US and a key growth driver.

Amazon rival Flipkart had announced raising USD 1.2 billion funding led by parent Walmart in July – which valued the e-commerce company at USD 24.9 billion.

Interestingly, Reliance Industries – which had announced the acquisition of Future’s retail, wholesale, logistics and warehousing units for Rs 24,713 crore last month – is also bolstering its operations ahead of the festive season.

Earlier this month, RIL’s retail arm – Reliance Retail Ventures Ltd – had said US private equity firm Silver Lake Partners will buy 1.75 per cent stake for Rs 7,500 crore.

Reliance Retail’s network includes supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart – spanning almost 12,000 stores in nearly 7,000 towns. In May, Reliance launched an online grocery delivery service, JioMart and had tied up with WhatsApp to connect customers with local kirana stores.

E-commerce companies see a large chunk of their business coming in during the festive sales and they make significant investments ahead of time to ramp up their capacity to be able to handle the spike in orders.

As per a report by RedSeer, festive sales are expected to almost double this year and touch USD 7 billion in gross merchandise value (GMV) as compared to USD 3.8 billion in the same period last year.

GMV is a term used in online retailing to indicate the gross merchandise value of products sold through the marketplace over a certain period.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Titan World-Helios The Watch Showroom inaugurated in Udupi

Mangaluru: Bike-borne miscreant snatches woman’s gold chain

Man who spotted tiger lying dead in Kerala found hanging

Govt making holistic efforts for wildlife sustainability, protection: Scindia

PFI wanted to turn India into Islamic state by 2047: Maha ATS

One Indian missing, 10 others stuck but safe in quake-hit Turkiye: MEA

Gaganyaan mission: ISRO, Navy carry out crew module recovery trials


Related Articles More

Chitra Ramkrishna granted bail in money laundering case

K’taka discusses investment plans with Foxconn chairman

France’s Total puts hydrogen partnership with Adani on hold pending clarity on allegation

Digital currency has 50,000 users, 5,000 merchants: RBI

KIOCL reduces Q3 net loss to Rs Rs 33.88 cr

MUST WATCH

solutions for urination a problem

Pangala Crime News

A successful coastal farmer growing watermelons

Mahesh Joshi Interview

Success Story of Mr bean


Latest Additions

Fear for deposits of people in banks, post offices and LIC: Mamata

Pro-Khalistani protestors snatched tear gas handgun, ammunition; tried to kill cops: Chandigarh Police FIR

Consuming nicotine during pregnancy increases risk of sudden infant death: Study

Vivek Agnihotri responds to Prakash Raj’s criticism of The Kashmir Files, calls him ‘urban naxal’

Titan World-Helios The Watch Showroom inaugurated in Udupi

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.