Amazon Seller Services gets fresh capital infusion of Rs 915 crore

Amazon Seller Services, the marketplace unit of the US-based e-tailing giant Amazon, has received a fresh capital infusion of Rs 915 crore (approx. $125 million), documents filed with the Registrar of Companies showed.

The investment was led by Singapore-based Amazon Corporate Holdings, with a token investment being made by the parent entity Inc, both of which were allotted a combined 915 million equity shares at a value of Rs 10 each.

Liking this story?

Get one mail covering top tech news of the day in under 5 minutes!

Please wait…

This is the first investment Amazon has made in its India marketplace unit this year, which comes amid concerns of sputtering growth in the e-commerce sector due to weak consumer sentiment and localised restrictions due to the deadly second wave of the pandemic.

The investment follows Amazon’s
recent announcement of setting up a $250 million venture fund – Amazon Smbhav Venture Fund – to back startups and entrepreneurs focusing on digitization of small and medium-sized businesses (SMBs) in India.

Amazon had
invested Rs 2,310 crore in Amazon Seller Services in June last year, soon after the government-mandated lockdowns had ended and the e-commerce sector was starting to see a strong recovery in sales, as consumers choose to shop more from the safety of their homes.

While a further surge in the growth momentum of e-commerce is seen in categories such as grocery and pharmaceuticals, large categories such as smartphones, electronics and fashion are estimated to be seeing a contraction due to the ongoing pandemic, and restrictions on e-commerce marketplaces in Maharashtra and Delhi.

See also  Lady Gaga, Christian Bale compete for top Screen Actors Guild awards

Amazon Seller Services, which earns money by charging a commission on the sale of products on its platform, apart from other services such as logistics, warehousing and marketing, reported a revenue of Rs 11,028 crore in the year that ended March 31, 2020, and a loss of Rs 5,849 crore in the same period.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.