Amazon Invests Over Rs 2,500 Crore Into Amazon Seller Services, Amazon Data Services India
Amazon has infused over Rs 2,500 crore into two of its Indian businesses, Amazon Seller Services and Amazon Data Services India, according to regulatory filings.
The investment comes just days after its founder and the world's richest man Jeff Bezos announced a $1 billion investment in digitising small and medium enterprises in the country.
An e-mail sent to the company did not elicit a response. As per regulatory documents sourced from business intelligence platform paper.vc, the board of Amazon Seller Services has allotted shares worth about Rs 2,208 crore to Amazon Corporate Holdings and Amazon.com Inc. The resolution to this effect was approved on Jan. 24.
A separate filing by Amazon Data Services India said shares worth Rs 355 crore have been allotted to A100 ROW Inc and Amazon.com Inc. This resolution was approved on Jan. 31. Amazon had recently pumped in over Rs 1,700 crore into its payments and wholesale business units in India, signalling opportunity that the U.S. giant sees in the country. Amazon Pay India had received Rs 1,355 crore, while Amazon Wholesale (India) allotted shares worth about Rs 360 crore.
Amazon Chief Executive Officer Bezos who was in India last month had promised $1 billion (over Rs 7,000 crore) investment in India to help bring small and medium businesses online and committed to exporting $10 billion worth of India-made goods by 2025. The ambitious investment announcement had however courted controversy after Commerce and Industry Minister Piyush Goyal termed the fund infusion "not a favour". Goyal had later clarified that his statement had been taken out of context.
India's antitrust body, the Competition Commission of India has ordered an investigation into alleged violations of competition laws by Amazon and its rival Walmart-owned Flipkart. Amazon and rival Flipkart have been pumping millions of dollars into across various operations like marketplace, infrastructure and supply chain management as well as marketing and promotion as they look to strengthen their position in the fledgling Indian e-commerce market.