Monday 10 February 2020

These two Amazon businesses have got Rs 2,500 crore boost

These two Amazon businesses have got Rs 2,500 crore boostAmazon has infused over Rs 2,500 crore into two of its Indian businesses, Amazon Seller Services and Amazon Data Services India, according to regulatory filings. The investment comes just days after its founder and the world's richest man Jeff Bezos announced USD 1 billion investment in digitising small and medium enterprises (SMEs) in the country.

An e-mail sent to the company did not elicit a response.

As per regulatory documents sourced from business intelligence platform, the board of Amazon Seller Services has allotted shares worth about Rs 2,208 crore to Amazon Corporate Holdings and Inc. The resolution to this effect was approved on January 24.

A separate filing by Amazon Data Services India said shares worth Rs 355 crore have been allotted to A100 ROW Inc and Inc. This resolution was approved on January 31.

Amazon had recently pumped in over Rs 1,700 crore into its payments and wholesale business units in India, signalling opportunity that the US giant sees in the country. Amazon Pay India had received Rs 1,355 crore, while Amazon Wholesale (India) allotted shares worth about Rs 360 crore.

Amazon CEO Bezos who was in India last month had promised USD 1 billion (over Rs 7,000 crore) investment in India to help bring small and medium businesses online and committed to exporting USD 10 billion worth of India-made goods by 2025. The ambitious investment announcement had however courted controversy after Commerce and Industry Minister Piyush Goyal termed the fund infusion "not a favour". Goyal had later clarified that his statement had been taken out of context.

India's antitrust body, the Competition Commission of India has ordered an investigation into alleged violations of competition laws by Amazon and its rival Walmart-owned Flipkart.

Amazon and rival Flipkart have been pumping millions of dollars into across various operations like marketplace, infrastructure and supply chain management as well as marketing and promotion as they look to strengthen their position in the fledgling Indian e-commerce market.

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