Amazon India, which operates under Amazon Seller Services Pvt. Ltd., has received a massive new investment worth around Rs. 2,600 crore from its US-based parent company Amazon Inc. This was first reported by Economic Times and came to light through the documents filed by the company with the Registrar of Companies (RoC).
Notably, Amazon has a made a total investment commitment in India of $5 billion (approx Rs 32600 crore). While $3 billion was committed in June last year, the $2 billion investment was announced back in July 2014. Last year, in October, the company infused around Rs 1620 crore in Amazon Seller Services through its Singapore and Mauritius subsidiaries. In the same year in June, the India unit had received Rs 1680 crore.
Last month, during the earnings call, the CFO of Amazon, Brian Olsavsky said that the company will continues its investments in India as it is seeing great progress with both sellers and customers in the region. In a letter shared by Amazon’s founder and CEO Jeff Bezos, he highlighted India as a “milestone” and said that Amazon India is the fastest growing marketplace. He also added that Prime added more members in India in its first year than any previous geography in Amazon’s history.
Amazon India’s biggest rival is homegrown e-commerce marketplace Flipkart, which has now been acquired by Walmart in a deal worth $16 billion — making it the largest M&A deal in the Indian startup ecosystem so far. With this acquisition, Flipkart’s co-founder Sachin Bansal has quit the company, while the other co-founder Binny Bansal and the company’s CEO Kalyan Krishnamurthy have decided to stay on.