According to business news reports, Amazon India has received a fresh infusion of Rs 2,600 crore from its parent company for its marketplace business, one of the largest by the Seattle-based firm in its India business, just as rival Flipkart has been acquired by Walmart.
The resolution for the latest infusion was passed on April 26, show Amazon India’s filings with the Registrar of Companies. Industry analysts said this could be a part of Amazon’s regular infusions into its India business and not necessarily due to the Walmart-Flipkart deal.
Amazon India in January received Rs 1,950 crore from its parent company, a couple of months after it got its largest capital infusion of Rs 2,900 crore in November.
The company in November passed a resolution to increase its authorised share capital to Rs 31,000 crore, or $4.7 billion, as it is expected to go past Amazon’s investment commitment of $5 billion in India.
Flipkart also recently saw an infusion into its marketplace business, Flipkart Internet, which received Rs 370 crore from its Singapore company, Flipkart Marketplace, in March 2018.
Amazon India and Flipkart have been fighting a diehard battle for market share among Indian consumers.
Amazon India has been focusing heavily on the smartphone and grocery categories—the first category to increase its gross merchandise volumes, a proxy for gross sales, and the latter to create adherence to customers.
Amazon India said it has crossed one million subscriptions for its pantry service, as the company gets aggressive in the grocery segment, especially with Walmart set to enter India by acquiring Flipkart.
“Grocery is one place that Amazon is committed to. It drives customer engagement,” said Manish Tiwary, vice president for category management at Amazon India. “Pantry is our response to customers looking for grocery baskets at a good value. The subscription and save grocery programme now has over a million subscriptions.”
Amazon Pantry services 38 cities in India, while the Amazon Now app is live in four cities with 15 small fulfillment or delivery centres launched exclusively for it.
In the competitive smartphone category, both Amazon and Flipkart have been fighting to win exclusive launches for leading brands.
In the reports, Tiwary has commented that some large brands in the smartphone category are shifting to its platform for certain exclusive launches, while brands like OnePlus continue to launch exclusives only on Amazon.