Amazon Transportation Services, the logistics arm of one of the largest e-commerce marketplaces in India, Amazon India, has received additional investment worth ₹207 crore from Amazon Corporate Holdings Singapore and Amazon Malaysia.
While the company has not announced this new capital infusion, it was revealed through the documents filed with the Registrar of Companies.
The investment marks second such instance in the recent times. Earlier, in September 2016, the parent company had allocated ₹67 crore to Amazon Transportation Services.
This new funding comes at a time when Amazon has scaled up its warehousing and fulfilment network to cater to special categories, including heavy and bulky products as furniture and large appliances. The company is also foraying into food retail and play in FMCG.
Last month, Amazon announced that it will be setting up of seven new fulfilment centres. It currently has a network of 41 fulfilment centres, compared with 31 under management.
The portal currently has around 1.4 lakh sellers and 80% of them use the Fulfilled by Amazon model to sell their goods, which requires them to store inventory at Amazon run warehouses.
Amazon India, which Jeff Bezos called as one of the fastest growing marketplace in India, has also received capital commitment of $5 billion. Of this, ₹7,000 crore was infused in the marketplace entity, Amazon Seller Services, in 2016 alone.
This year, so far, Amazon India has already pumped in ₹67 crore in Amazon Pay and ₹100 crore in Amazon Wholesale, which runs the Amazon Business entity for business-to-business transactions.
With recent cash infusion in Amazon Pay, the entity is now planning to build a full-stack payment play. The business expansion comes after the company got a prepaid instrument (PPI), or a wallet licence from banking regulator Reserve Bank of India (RBI).
Amazon has also proposed to invest $500 million over time in food retail as it has also applied for a FDI license for creating its own supply chain for food retail and delivering fresh produce.
