Amazon invests Rs 450 crore in India to expand its payments unit
25th September 2021, Mumbai:
Amazon has spent Rs 450 crore ($61 million) in the Indian market to bolster its payments business Amazon Pay.
The business had already raised Rs 225 crore through a Singapore subsidiary in May.
The current investment brings Amazon Pay's total capital infusion this year to Rs 900 crore. Amazon plans to use the capital to expand its payments operation in the nation and to attract new consumers by offering cashback and other incentives.
According to regulatory papers filed with the Ministry of Corporate Affairs and obtained by business intelligence platform Tofler, Amazon Pay (India) has allocated 45 crore equity shares worth Rs 450 crore to Amazon Corporate Holdings Pvt Ltd and Amazon.com.incs Ltd.
Amazon Corporate Holdings Pvt Ltd received 449,955,036 equity shares, while Amazon.com.incs Limited received 44,964 equity shares, according to the filing.
On September 17, 2021, the shares were distributed. Amazon sees a lot of promise in India's digital payments market and has been investing heavily to keep up with competitors like PhonePe, Google Pay, and Paytm, among others.
During the next Christmas season, the new investment is likely to help the company compete with rival Flipkart.
As a result of the coronavirus outbreak, consumers have grown increasingly reliant on e-commerce to purchase everything from essentials to holiday presents, and Amazon Pay is rapidly extending its footprint in the Indian market.
Amazon is attempting to grow into a number of industries in the United States, including insurance, wealth management, and credit via Amazon Pay.
In order to deepen its footing in the Indian market, Amazon has been investing millions of dollars across several businesses, including the marketplace, wholesale, and payments divisions.
Last year, the e-commerce behemoth invested Rs 700 crore in its Indian payments arm, with Amazon Pay allotting 700,100,000 equity shares worth Rs 700.1 crore on a rights basis to current shareholders.
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