dAmazon is putting in more money into its India operations. According to filings assessed by data intelligence platform Paper.vc, the US HQed e-commerce behemoth has put in a massive $630 Million into its India businesses. Amazon Pay, Amazon seller services and the retail arm are the beneficiaries.
A further breakdown of the invested amount indicates, that more than half of this capital will go into Amazon Seller Services, which runs the marketplace business, and is the biggest cash guzzler due to deep discounting, promotions and marketing. The Great Diwali sale also concluded fairly recently, and hence the requirement of additional cash.
Amazon Pay India, the company’s rather recently launched digital payments arm will get ₹900 crore (~$130 Million), to continue funding cashbacks, marketing and adding more merchants. The payments arm competes with Flipkart’s PhonePe, Paytm, Google Pay, along with Indian Government’s own aggressively marketed UPI apps.
Interestingly, the remainder of the cash, close to ₹170 Crore (~$24 Million) will go into Amazon Retail, the company’s food business that will compete with Flipkart’s recently announced Farmermart. Amazon, like it has done in other markets in the west, will run a full fledged food business in India, with grocery supplies to in-house products.