Ecommerce firm Amazon has infused Rs 1,600 crore into its India entity Amazon Seller Services, according to its regulatory filings.
Photograph: Amit Dave/Reuters
The funding comes at a time when the company is seeing opportunities in emerging geographies, including India.
The regulatory filings are dated April 15. This is the second time in five months that Amazon invested in its India arm Amazon Seller Services.
Before this, Amazon had infused over Rs 1,000 crore into its Indian entity this year.
In February, its marketplace entity received Rs 830 crore.
In January, Amazon invested Rs 350 crore in the entity running its fintech unit, Amazon Pay.
Amazon’s chief rival Flipkart recently raised nearly $600 million in fresh funds from its parent company, Walmart, and another investor.
Industry sources said Flipkart was in talks with investors to raise a funding round of about $1 billion.
The company plans to deploy the capital to expand its infrastructure, seller support ecosystem, and the latest technologies.
SoftBank-backed Meesho recently closed a $275 million funding round comprising primary and secondary share sales.
This is part of a larger $600 million financing round that it is planning to raise.
India’s e-tailing sector is poised to experience fivefold growth, surging from $59 billion in 2022 to an estimated $300 billion by 2030, fuelled by value-seeking “mass” consumers.
As a strategy to tap the market deeper, Amazon recently introduced a special store called “Bazaar” in India, featuring low-priced, unbranded fashion and lifestyle products.
Amazon’s goal is to cater to a particular group of customers who prioritise affordability over brand names.
This strategy could present a challenge to Meesho, known for providing budget-friendly consumer goods sourced from local retailers.
