Amazon Seller Services, the marketplace division of Amazon India, has generated INR 830 crore from its US parent.
As a part of this capital injection, Amazon Seller Services has allotted 830 million equity shares to Amazon Corporate Holdings Ltd and Amazon.com.inc.
On January 19, the company injected INR 350 Cr into its fintech unit, Amazon Pay. According to ET, this raises Amazon’s total investment in its India entities to over INR 1,000 Cr for the year.
In November 2021, Amazon Seller Services Private Limited secured a corporate round funding of INR 1,460 Cr from its parent company.
The injection of funds into the marketplace continues despite the US group’s heightened focus on bolstering its cloud services division, Amazon Web Services, over its core ecommerce operations.
In June of last year, CEO Andy Jassy revealed plans for an extra $15 billion investment in India, aiming for a total investment exceeding $26 billion by 2030.
In December, reports suggested a reshuffle in top-level management in India, with Noor Patel, the former head of category management in India, relocating to the US.
According to sources, the restructuring might result in a fresh dual leadership arrangement, with both Patel and Amit Agarwal, senior vice president for India and emerging markets, taking the helm.
During the fiscal year ending on March 31, 2023, Amazon Seller Services saw a 3.4% rise in revenue to INR 22,198 Cr, accompanied by a one-third widening of its loss to INR 4,854 Cr.
In 2023, Amazon reduced its workforce in India by laying off between 500 and 1,000 employees, as part of global job cuts, and additionally ceased operations of smaller ventures such as food delivery services.
The investment aligns with reports of Amazon venturing into the logistics sector in India, unveiling a new arm named Amazon Shipping. The company’s entry into this realm involves initially managing non-Amazon orders. Amazon has begun forging partnerships with direct-to-consumer (D2C) brands, logistics aggregators, and other enterprises directly catering to consumer orders to launch this fresh initiative.
In 2023, Amazon injected an extra INR 400 Cr into its Indian logistics division, Amazon Transportation Services.
Continue Exploring: Amazon retains top spot as MSMEs’ preferred platform, reveals ISF Report