Amazon — the global eCommerce giant, has invested around ₹2,900 crore into its Indian unit Amazon Seller Services. The investment comes just days after the company invested around ₹130 crore into its logistics arm Amazon Transportation Services.
This investment into the Indian unit of the eCommerce giant brings the total funding received in this year to a whooping ₹17,840 crore. The amount is more than double of Flipkart’s investment of ₹8,349 crore into its marketplace.
Along with receiving new funding, the company has also passed a resolution to increase the authorised share capital of the company from ₹16,000 crore to ₹31,000 crore or $4.7 billion. This indicates the company is expecting more investment, which could go beyond the commitment of $5 billion in India.
In a statement, Amazon India said:
As India’s largest and fastest-growing ecommerce player, and with a long-term commitment to make e-commerce a habit for Indian customers, we continue to invest in the necessary technology and infrastructure to grow the entire ecosystem. We are delighted and humbled by the trust from our customers, to lead in India on things that matter to our customers in over four years of our business, while continuing to launch innovative India-first initiatives as well as completely new offerings like Echo, Prime and Prime Video.
Prior to this, Amazon had invested around ₹1,680 crore in June this year. Last month, the company again invested ₹1,620 crore into the Indian marketplace. In India, the company has been focusing on increasing its service.
Amazon has extensively grown the number of fulfilment centres across India. It now has around 41 centres across 13 cities in India and the company claims that about 90% of its sellers are using its logistics services. Amazon has been scaling up its warehousing and fulfilment network in the country to cater to specialised lines of business, including heavy and bulky categories such as furniture and large appliances.
A few months ago, one of the biggest rival of Amazon in India, Flipkart — the homegrown eCommerce marketplace, raised around ₹16,000 crore funding round which was led by Japan-based SoftBank.