New Delhi: The US-based Amazon is pumping in over Rs 4,400 crore (more than USD 600 million) in its various units in India including marketplace and food retail to provide them more ammunition to compete against arch-rival Flipkart.
Amazon, which is locked in a battle against Flipkart, had registered cumulative losses of over Rs 7,000 crore across various units in 2018-19. However, the fresh funding is indicative of Amazon's confidence in the Indian market.
As per the regulatory filings made to the Corporate Affairs Ministry, two entities - 'Amazon Corporate Holdings' and 'Amazon.com.incs Ltd' are pumping in Rs 3,400 crore in Amazon Seller Services (marketplace unit), Rs 900 crore in Amazon Pay (India) (payments arm) and Rs 172.5 crore in Amazon Retail India (food retail business).
"...consent of the board be and is hereby accorded for allotment of 3,400,000,000 (340 crore) equity shares of Rs 10 each aggregating to Rs 3,400 crore to the existing shareholder on right basis...," the filing, sourced by Paper.vc said.