by Apparel Resources News-Desk
07-June-2019 | 2 mins read
US-based online retail giant Amazon has stepped up its investment in its Indian marketplace and has pumped Rs.2,800 crore into it. The fresh infusion comes at a time when the Seattle-headquartered firm very recently exited from China.
The firm had infused Rs.2,200 crore into its Indian business just six months ago and has so far spent upwards of US$5.5 billion.
The retail giant’s main rival is Walmart-owned Flipkart and the recent funding is expected to help the firm take on its opposing party.
Amazon India allotted 2.8 billion equity shares of Rs.10 each aggregating to Rs.2,800 crore at par on rights basis to the existing shareholders of the company, according to the regulatory documents filed by Amazon. The resolution for this capital infusion was passed by the board of directors of Amazon Seller Services on 21 May.
This also coincides with a time when Amazon is facing little downtime in India owing to recent change in the country’s e-commerce regulations. The revised e-commerce policy had barred e-commerce players from selling products through entities in which they own a stake. Vendors were also not allowed to have more than 25 per cent of their revenues coming from a single platform.
Brian T. Olsavsky, Senior Vice President and Chief Financial Officer, Amazon, had said that the company had to make structural changes to comply with all the new regulations in India.
Meanwhile, rival Flipkart has seen no fund infusion from its parent in this financial year. The last time when Flipkart got funds was in September 2018; Flipkart Singapore had then pumped Rs.34.6 billion into the Indian marketplace.
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