Amazon, the world’s leading e-commerce platform, has been spending heavily in the Indian e-commerce space to gain a signification market share. Now, the company has announced a fresh infusion of $30 million or Rs. 220 crore in its digital payments arm, Amazon Pay.
The development comes just a few months after the company invested around $81 million or Rs. 500 crore in Amazon Pay ahead of the festive season sales in India. Earlier in July, the company had received Rs. 230 crore funding, taking the firm’s total funding to Rs. 1,820 crore since its inception in 2016.
In its filings, the company said: “While the services of the company saw significant adoption in a short period of time, the new KYC regulations have impacted customer experience and negatively altered the migration trajectory of cash customers to digital. APIPL, however, remains committed to solving this challenge and has applied for a KUA license to offer customers digital Aadhar-based KYC services which are currently under review with UID.”
The company’s net loss amounted to 85% of its revenue, reaching $45.17 Mn, which widened 88% from the $24.04 loss for the previous year. The company noted that “Amazon Pay Balance: Money”, was a key initiative to shift customer behavior from cash to digital means for their payments both on and off Amazon.
Digital transactions accounted for 75 percent of all transactions on Amazon India during its recent festive season sales thanks to Amazon Pay. Through Amazon Pay, the company offered large cash backs and other easy payment options.
According to a report by Niti Aayog, the digital payments market in India is expected to grow to $1 trillion by 2023. The major players in the digital payments market continue to be Paytm, PhonePe, Google Pay (previously Tez), among others.