Amazon infuses Rs. 225 crore into India payments unit

According to regulatory records, Amazon has invested over Rs. 225 crore (US$ 30.96 million) into Amazon Pay, the payments unit in India.

The new funding would enable the company to perform more strongly among players such as PhonePe, Google Pay, and Paytm.

According to regulatory documents obtained by business intelligence platform Tofler, the board has approved allotment of 22,50,00000 equity shares, aggregating to Rs. 225 crore (US$ 30.96 million) to the current shareholder on rights basis.

According to documents filed with the corporate affairs ministry, the shares were allocated to Amazon Corporate Holdings Private Limited and Amazon.com.Incs Limited.

Amazon did not respond to requests for information.

Amazon Pay garnered over Rs. 700 crore (US$ 96.31 million) in October 2020, and these organizations invested Rs. 1,355 crore (US$ 186.43 million) in January 2021. In order to expand its foothold in the Indian market, Amazon has been investing millions of dollars into various operations such as the marketplace, wholesale, and payments businesses.

Amazon founder Mr. Jeff Bezos confirmed a US$ 1 billion (over Rs. 7,000 crore) investment in India in January of last year to help small and medium businesses go online. Previously, Amazon had dedicated US$ 5.5 billion to India, one of the most significant markets outside of the US and a primary growth driver.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.