Amazon invests Rs 450 crore to strengthen payments unit in India
E-commerce giant Amazon has invested Rs 450 crore ($61 million) to strengthen its payments unit Amazon Pay in the Indian market. The company had earlier infused capital of Rs 225 crore in May through a Singapore unit.
The latest investment takes the total capital infusion in Amazon Pay to Rs 900 crore this year. Amazon will utilise the funds to strengthen its payments business in the country and acquisition of new customers by luring them with cashback and offers.
“Amazon Pay (India) has allotted 45 crore equity shares, aggregating to Rs 450 crore to Amazon Corporate Holdings Pvt Ltd and Amazon.com.incs Ltd,” regulatory documents filed with the Ministry of Corporate Affairs and sourced by business intelligence platform Tofler showed news agency PTI reported.
According to the filing, Amazon Corporate Holdings Pvt Ltd was allotted 449,955,036 equity shares, while Amazon.com.incs Limited was given 44,964 equity shares. The shares were allotted on September 17, 2021.
Amazon sees huge growth potential in the digital payments space in India and has been continuously investing to compete with its rivals like PhonePe, Google Pay, and Paytm, among others. The fresh investment is expected to help the firm compete with rival Flipkart during the upcoming festive season.
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