E-commerce giant Amazon has invested another ₹2,900 crore ($443 million) in its India unit. As investment is part of its commitment to put in $5 billion to enlarge its Indian business.
The biggest capital infusion comes soon after the company put ₹1,620 crore in its marketplace entity. Amazon Seller Services has also passed a proposal to expand the authorized share capital for its India unit from ₹16,000 crore to ₹31,000 crore or $4.7 billion. The company competes with online marketplace Flipkart, which had newly declared that it was sitting on more than $4 billion cash on its balance sheet.
Jeff Bezos founder of Amazon has already expanded its capital commitment to $5 billion for India, has cultivated over $2 billion in its Indian operations. As it fights to penetrate the market here with a host of offerings aside of e-commerce like Prime Videos, Music, its smart assistant Alexa and hands-free speaker Echo.
“As India’s largest and fastest growing e-commerce 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,” an Amazon India said in a statement.
“We had the first Prime Day sale there this year, Prime Music, Amazon Business is also expanding in India. So, a lot of positive momentum and investment going on in India, we are very pleased with that. We also recently announced Echo and Alexa will be available in India,” he further added.
Amazon Seller Services is also increasing its authorized share capital from ₹16,000 crore to₹31,000 crore, which means that the retail giant’s investment commitment is likely to shoot past 5 billion dollars.
Amazon India, which fulfilled four years of operations early this year, has been managing its investments towards building warehouses, strengthening logistics and enlarging product assortment.
Similarly like Amazon, Flipkart had also raised 2.4 billion dollars from SoftBank and 1.4 billion dollars from Tencent Holdings, eBay, and Microsoft.