 "Amazon (Photo: Bloomberg)")
E-commerce firm Amazon has infused Rs 1,600 crore into its India entity, Amazon Seller Services, according to the regulatory filings. The funding comes at a time when the company sees meaningful progress in emerging geographies, including India, as it continues to expand its selection and features and move toward profitability.
The regulatory filings are dated 15 April. This is the second time in five months that Amazon has invested money into its India arm, Amazon Seller Services. Before this, Amazon has already infused over Rs 1,000 crore into its Indian entities this year. In February, its marketplace entity received Rs 830 crore. In January, Amazon invested Rs 350 crore in the entity running its fintech unit, Amazon Pay.
Amazon’s chief rival, Flipkart, recently raised nearly $600 million in fresh funds from its parent company, Walmart, and another investor. Industry sources revealed that Flipkart was in talks with investors to raise a total funding round of about $1 billion. The company plans to deploy the capital to expand its infrastructure, seller support ecosystem, and the latest technologies.
SoftBank-backed Meesho recently closed a $275 million funding round comprising a mix of primary and secondary share sales. This is part of a larger $600-million financing round that it is planning to raise.
India’s e-tailing sector is poised to experience a fivefold growth, surging from $59 billion in 2022 to an estimated $300 billion by 2030, fuelled by value-seeking ‘mass’ consumers.
As a strategy to tap the market deeper, Amazon recently introduced a special store called 'Bazaar' in India, featuring low-priced, unbranded fashion and lifestyle products. Amazon’s goal is to cater to a particular group of customers who prioritise affordability over brand names. This strategy could present a challenge to Meesho, known for providing budget-friendly consumer goods sourced from local retailers.
Amazon CEO Andy Jassy said in the 2023 shareholder letter that the company sees meaningful progress in emerging geographies, including India, as it continues to expand selection and features and move toward profitability.
Amazon has said that over 7 billion Amazon items arrive the same day or the next day in 2023, and it expects even faster delivery times in 2024.
Amazon is upping its investment in India by committing an additional $15 billion in the country over the next 7 years. This will take Amazon's total India investment across all businesses to $26 billion. The announcement came last year as Amazon CEO Andy Jassy met Indian Prime Minister Narendra Modi in the US. This investment includes $12.7 billion that Amazon Web Services (AWS) said it would invest in India by 2030.
Amazon is upping its investment in India by committing an additional $15 billion in the country over the next 7 years. This will take Amazon's total India investment across all businesses to $26 billion. The announcement came last year as Amazon CEO Andy Jassy met Indian Prime Minister Narendra Modi in the US. This investment includes $12.7 billion that Amazon Web Services (AWS) said it would invest in India by 2030.
