Amazon pumps Rs 4,472 crore into India business

A massive chunk of the funding, about Rs 3,400 crore, will go to Amazon Seller Services that essentially runs the marketplace business in India. 

Representative image. (Reuters photo)

Global technology behemoth Amazon is reportedly putting in about Rs 4,472 crore ($630 million) in three of its business verticles in India - Amazon Pay, Amazon Retail and Amazon Seller, according to regulatory filings accessed by business intelligence platform Paper.vc.

A massive chunk of the funding, about Rs 3,400 crore, will go to Amazon Seller Services that essentially runs the marketplace business in India. 

With renewed interest in online payment options, Amazon Pay India that competes with giants such as PhonePe, Paytm, Google Pay, will get Rs 900 crore. Amazon Pay India had recorded a massive rise in losses, increasing to Rs 1,160.8 crore in FY19 from Rs 334.20 crore in FY18, as per filings accessed by Paper.vc. The revenue has seen an uptick, rising from Rs 3,891 crore to Rs 8,065 crore in the same time period. 

The rest of the funding, about Rs 172 crore will be put into Amazon Retail, that competes with Big Basket, Grofers and others in the growing food retail business in India 

Amazon Wholesale India - the B2B arm of the e-commerce giant - reported revenue for FY 19' at Rs 11,250 crore, an 8% fall since the last financial year, the filings stated.  The losses increased to about Rs 141 crore during the same fiscal.

Filings accessed by Paper.vc also state that Amazon Seller Services narrowed its losses to Rs 5,685 crore for 2018-19 financial year, a 9.5% decrease from the 2018 fiscal when the vertical had posted a loss of Rs 6,287.9 crore. Meanwhile, seller services saw revenue growing 55% to Rs 7,778 crore in FY19 over the previous fiscal. Amazon's net losses in the country in the last fiscal were over the Rs 7,000-crore mark.

 

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