US-based ecommerce giant Amazon has infused fresh capital to the tune of Rs 2,310 crore into one of its India units, Amazon Seller Services, according to regulatory documents.
Amazon Corporate Holdings and Amazon.com.inc have made the Rs 2,310 crore investment in the unit, documents filed with the corporate affairs ministry showed.
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The board of directors of Amazon Seller Services passed the resolution at their meeting on June 25, 2020. E-mails sent to Amazon India seeking comments on the fund infusion did not elicit a response.
According to financial data accessed by business intelligence platform Tofler, a significant share of the funds (Rs 2,309.8 crore) came from Amazon Singapore.
The fresh funds will provide more arsenal to Amazon in India as the company has been aggressively investing in expanding infrastructure and adding solutions to enhance consumer and seller experience.
In January this year, Amazon founder Jeff Bezos had announced $1 billion (over Rs 7,000 crore) investment in India to help bring small and medium businesses online.
Previously, the online retail giant had committed $5.5 billion investments in India, Amazon's most important market outside of the US and a key growth driver.
The board of Amazon Seller Services had passed a resolution in January this year to allot shares worth about Rs 2,208 crore to Amazon Corporate Holdings and Amazon.com Inc. About Rs 355 crore was pumped into Amazon Data Services India as well.
Amazon, which competes against Walmart-backed Flipkart and others in India, has also been pumping in funds into its other entities in the country, including Amazon Pay and its wholesale business.
Earlier this month, Amazon India extended a 100 percent SoA (Sell on Amazon) fee waiver for 10 weeks, a move aimed at helping over 10 lakh artisans, weavers, and women entrepreneurs who are part of its 'Karigar' and 'Saheli' programmes.
"The 'Stand for Handmade' initiative is aimed at helping over 10 lakh entrepreneurs, including artisans, weavers, and women entrepreneurs, rebound from the economic disruption caused by COVID-19," Pranav Bhasin, Head - MSME Empowerment and Seller Experience, Amazon India, said.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Megha Reddy)
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Link : https://yourstory.com/2020/07/amazon-seller-services-fresh-fund-infusion
Author :- Press Trust of India ( )
July 08, 2020 at 11:17AM
YourStory