After filing its annual performance report for the financial year ending March 2019, Amazon decided to invest Rs. 4,472.50 crore (US $ 630 million) in three of its Indian businesses – Amazon Pay, Amazon Retail and Amazon Sellers Service, according to business intelligence platform Paper.vc.
The largest chunk of the total investment worth Rs. 3,400 crore will go into Amazon Seller Services which runs the marketplace.
However, Amazon Pay India which is in competition with Flipkart’s PhonePe, Paytm, Google Pay, etc., will get Rs. 900 crore in order to facilitate funding cashbacks, marketing and adding more merchants.
And the remaining Rs. 172.50 crore will go into Amazon Retail, which is the food business.
The intelligence platform added that the resolution was passed by the board of directors of Amazon Seller Services on 14 October 2019.
Jeff Bezos, the founder of the retail giant, had committed investment worth US $ 5 billion in the Indian market in 2016.
Amazon and Flipkart have been investing millions of dollars across various operations as they are looking at strengthening their position in the Indian e-commerce market.
However, the growth journey has not been without its shares of losses. According to regulatory documents, Amazon’s losses in India across its marketplace in 2018-19 were over Rs. 7,000 crore.
But the online marketplace arm of the e-commerce giant in India, Amazon Seller Services, has successfully narrowed its loss to Rs. 5,685 crore for 2018-19.
This is a 9.5 per cent decrease from the last financial year, when the company had posted a loss of Rs. 6,287.9 crore.
