Global e-commerce giant Amazon has invested $79.8 million (INR 590 crore) in its Indian digital payment arm Amazon Pay. Prior to this, in July 2018, Singapore-based Amazon Corporate Holdings and Amazon.com.inc had invested $33.5 million in Amazon Pay.
The investments comes at a time when the Amazon Pay is predicted to offer huge cashbacks to customers during the upcoming festive season sales. At the same time, the company is also looking to offer products such as debit card EMI and cardless EMI in order to push sale of high-ticket products.
The e-commerce platform has reportedly infused nearly $216.8 million into its Indian digital payment arm Amazon Pay since 2016. Earlier in March, Amazon Pay India head Mahendra Nerurkar had said that the company would continue to invest aggressively in its digital payments arm over the next several months.
In an effort to push cashless transactions, Amazon India launched its payments service under Pay Balance in 2016. In April 2017, Amazon secured a licence to operate a pre-paid payment instrument (PPI) or a digital wallet. With this, Amazon joins the ranks of its rivals Flipkart and Paytm Mall. Both Flipkart and Paytm Mall have their own wallets, PhonePe and Paytm, respectively.
In terms of financials, Amazon Pay’s net loss widened in FY17 to Rs 177.8 crore against Rs 7.88 crore a year ago, as per the RoC filings. Revenue from operations during the period increased to Rs 4.08 crore from Rs 28 lakh a year ago. Total expenses also increased to Rs 185 crore from Rs 8.2 crore in FY16.