The proposed deal between Walmart and Flipkart has resulted in Amazon ramping up its India operations, with the company infusing a further Rs.2,600 crore in its Seller Services arm. The latest investment means that Amazon has invested over Rs.20,000 crore in this sector.
This marks the second investment since January this year, with Amazon having invested around Rs.1,950 crore then. The parent company also invested Rs.2,900 crore into the Indian arm in November last year.
The battle between Amazon and Flipkart for market leadership has seen investments from both ends, but the proposed acquisition of the latter by Walmart could see Amazon investing more in the country.
Flipkart, on its end, saw a capital infusion worth Rs.370 in March.
Amazon had a commitment of investing $5 billion in the country, with it passing a resolution which sought an increase in its share capital to $4.7 billion.
Amazon, in the past, has used the capital to expand its storage capacity, building new warehouses for the same. This has also resulted in creating thousands of new jobs in the system.
In a bid to keep ahead of Flipkart, Amazon has focussed its attention towards grocery items, having launched a pantry service for the same. According to company officials, this service has over 1 million subscribers. The service is currently available in over 35 Indian cities.
The investment comes despite the fact that Amazon’s international operations recorded a whopping loss of $622 million in the first quarter of this year.