Amazon India has received a fresh infusion of Rs 2,700 crore, just months after its parent company had pumped in Rs 2,600 crore into the marketplace business in May. This brings the total infusion into Amazon India to over $1 billion since January alone.
The Seattle company also pumped in Rs 100 crore into its food retail business Amazon retail, as per regulatory filings sourced from business intelligence platform paper.vc.
Amazon had in January received Rs 1,950 crore, and its total infusion into its marketplace business now stands close to Rs 25,090 crore or over $3.6 billion. It has committed $5 billion to win the India market.
The latest infusion comes as Amazon is bracing for the festive season, which will also see its rival, Walmart-owned Flipkart, reach out for its arsenal.
“Amazon would want to push aggressively this festive season and beat Flipkart on a standalone basis in terms of marketshare,” said Satish Meena, senior forecast analyst at Forrester. Forrester’s recent data had shown Amazon had a marketshare of 31.1%, while Flipkart Group had a marketshare of 39.5%, with the standalone ecommerce entity having a marketshare of 31.9%.
Amazon received the latest tranche on August 6 from Singapore-based Amazon Corporate Holdings and Mauritius-based Amazon.com, while Amazon Retail received the tranche of July 31 from the same entities, the filings show.
Amazon Retail India had received an infusion of Rs 10.5 crore from the parent company in June. The Seattle-headquartered company has committed to invest up to $500 million in its food retail business, for which it has kicked off a pilot in Pune.
“While Amazon is expected to keep pushing on grocery, the growth is expected to be slow, and it is likely to focus on fashion and electronics to keep its customers from going to other platforms for these categories,” Meena said.
ET reported earlier this month that Amazon has updated its risk factors taking cognizance of competition in global markets, coming few months after its US-based rival Walmart announced that it plans to buy 77% stake in India’s largest online retailer Flipkart.
The Seattle-based online retail giant has also expanded the definition of retail to include physical, e-commerce and omni-channel, especially under its international operations, which comes as Amazon entered food retail in India earlier this year.