Amazon has pumped in ₹590 crores in its digital payments arm Amazon Pay, ahead of the festive season sale. The fresh investment comes weeks after Amazon had infused ₹230 crores in its payments arm in July.
According to the RoC filings sourced from business intelligence platform paper.vc, the fresh funds have come from Singapore-based Amazon Corporate Holdings and Amazon.com.incs.
The latest infusion is expected to help the e-commerce giant ramp up its efforts to dominate the festive season sale, which is barely a week away.
Amazon Pay is expected to offer large cashbacks to its customers, during the upcoming sales, in order to capture larger market share, while competing with its rival Flipkart.
Amazon and Flipkart are both flush with cash and are heavily focused on making their sales a success.
It is no surprise that Indian e-commerce giants are focused on the festive season sales. According to consulting firm RedSeer, around 20 million people are expected to shop on various e-commerce platforms during the festive season in October, with total sales expected to be around $3 billion.
Last year the festive season, the overall sales were worth $1.5 billion for the e-tailing industry, with Flipkart emerging as the leader across various platforms.
Amazon has been actively working towards the festive season sales this year, in order to dethrone Flipkart from the top spot.
Last month, Amazon India slashed storage charges and seller fee across five categories, in order to onboard more sellers, to offer a wider range of products to its customers. It also introduced Amazon Pay EMI, offering a credit limit up to ₹60,000 to its users, enabling them to buy products, even if they don’t have access to credit cards.
Earlier in August, Amazon had infused ₹2,700 crores in Amazon India, enabling the e-commerce giant to offer huge discounts and cashbacks for the festive season.