[Funding alert] Amazon invests Rs 51 Cr in Bengaluru-based Quess Corp for 0.51 pc stake
US-based ecommerce giant Amazon has made an investment of Rs 51 crore for 0.51 percent stake in Bengaluru-based business services firm, Quess Corp.
According to the BSE filings by Quess on July 12, the company has issued 754,437 equity shares to Amazon.com at an issue price of Rs 676 on a preferential basis.
Amazon will invest the amount in the company’s subsidiary, Qdigi Services, an after-sales support company for smartphones, consumer electronics items, and durables.
Qdigi, which has a network of nearly 80 walk-in-centres, and 200 authorised service providers across India, was acquired by Quess Corp last year from HCL Infosystems for $4.7 million.
Established in 2007, Quess serves over 2,000 clients worldwide and has a market cap of approximately Rs 10,909 crore as on March 31, 2019.
Amazon, which first made an investment of $10 million in Bengaluru-based gift card solutions provider QwikCilver Solutions in December 2014, has also backed other Indian technology startups like digital insurance firm Acko, financial marketplace BankBazaar, digital lender Capital Float and payments technology firm Tone Tag.
In February 2016, Amazon acquired a Noida-based online payment solutions provider EMVANTAGE Payments Pvt Ltd. for an undisclosed amount.
Earlier last month, Amazon also pumped in Rs 2,800 crore into its Indian marketplace which saw its operational revenue grow by 57.5 percent to Rs 4,928 crore in FY18, from Rs 3,128 crore in FY17. While the Flipkart marketplace’s operational revenue for FY18 was Rs 2,790 crore, compared to Rs 1,882 during the previous financial year.
Not only Amazon, but its Indian rival Flipkart has also been focused on strengthening its electronics business previously. In 2014, the Walmart-owned ecommerce company had bought Jeeves, an after-sales service and installations provider, and later in 2017, it also acquired F1 Info Solutions, an electronics service providers specializing in repair and refurbishment of mobile phones.