Amazon pumps Rs 2,200 Cr in Indian marketplace
With this addition, Amazon has now infused more than the amount of loss (Rs 6,287 crore) its Indian marketplace unit incurred in FY18.
The infusion of Rs 2,200 crore came three months after the Seattle-based ecommerce giant pumped Rs 2,700 crore into its Indian marketplace business in August this year, documents filed with Registrar of Companies (RoC) revealed.
Earlier in May this year, Amazon’s India business had received Rs 2,600 crore from its parent. The total amount of money the Amazon parent has pumped so far in the current financial year is Rs 7,500 crore (more than a billion dollars).
The fund infusion has come from two of Amazon group’s entity: Amazon Corporate Holdings Pvt. Ltd and Amazon.com Incs Ltd.
The Amazon Indian marketplace arm saw its operational revenue grow by 57.5 percent to Rs 4,928 crore in FY18, from Rs 3,128 crore in FY17. While Flipkart's marketplace posted an operational revenue of Rs 2,790 crore for the financial year 2018, compared to Rs 1,882 during the previous financial year, showing a growth of around 48 percent.
Last month, Amazon had infused Rs 122 crore into its Indian logistics arm, Amazon Transportation Services Private Ltd. The fund infusion was done by Amazon Corporate Holdings and Amazon.com.
Amazon has been investing a lot in logistics to improve customer experience. Speaking to YourStory earlier, Amazon India Vice President for India Customer Fulfilment Akhil Saxena, had stated that the fulfilment centre's capacity has been increased to 20 million cubic feet, and the number of stores under the “I Have Space” programme has been increased to 20,000 this year from 17,500 last year.
Even the number of stations under “Service partner programme” has increased to 700 from 350 last year. Under both these programmes, small stores and entrepreneurs sign up as partners for last mile delivery.
