Udayavni Special

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

India’s COVID-19 case fatality rate falls below 1.5 per cent

#GatewayToGoodness: Adani Group takes over Mangalore airport

B’luru: Show-cause notice issued to 7 hospitals over non-compliance of order for reserving beds

Minimum government, maximum governance: PM’s mantra to IAS probationers

Free COVID-19 vaccine promise not violation of poll code: EC

Conversion just for sake of marriage is not valid: Allahabad High Court

Mandya origin Vivek Murthy is Biden’s key strategist in US Presidential polls



Related Articles More

Yamaha ties up with Amazon India to sell apparels, accessories online

Biocon ranked among top five biotech employers globally

Govt likely to extend Air India bid deadline to Dec 14; investors to get flexibility on debt

Competition for jobs in India spiked 30 percent since 2019: LinkedIn data

COVID-19 hits India’s gold-buying sentiment; Q3 demand drops by 30 pc: WGC

MUST WATCH

Two-month-old baby elephant found in Belthangady

Collision guaranteed in a blink at this dangerous road turning

COVID19 | Peoples take on reopening of schools | Udayavani

Gadaga Accident victim arrives to vote in ambulance

Mangalore Dasara -2020 Highlights

Latest Additions

India’s COVID-19 case fatality rate falls below 1.5 per cent

New black coral species found on Pacific Ocean seabed

NEP’s approach is to realise new system aligned with 21st century edu goals: Kasturirangan

Mysuru: Rare ‘Chestnut-headed Bee-eater’ sighted

AFI chief warns athletes not to take banned drugs by taking advantage of COVID-19 pandemic

Thanks for visiting Udayavani

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