E-commerce giant Amazon has infused an additional capital of Rs 225 crore ($30.2 million) into its digital payments arm in India ‘Amazon Pay’ through a Singapore unit. The latest investment takes the total capital infusion in Amazon Pay to Rs 450 crore this year.
The company had earlier invested another Rs 225 crore in March through Amazon Corporate Holdings, Singapore along with a token investment from Mauritius-based Amazon.com Inc.
“The fresh investment has been made by Amazon Corporate Holdings Private Limited, Singapore and Amazon.com Inc Limited, Mauritius against 22.5 crore equity shares. The significant share has gone to Amazon Singapore which has invested Rs 224.9 crore,” Businessline reporting citing financial data from business intelligence platform, Tofler.
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.
In the financial year 2020, Amazon Pay India received Rs 2,705 crore from Amazon Corporate Holdings Private Limited and Amazon Incs Limited.
Despite the capital infusion, Amazon Pay saw its losses widen to Rs 1,868 crore ($253.4 million) in the financial year 2020, as compared to Rs 1,160 crore it had reported in the fiscal ended March 2019.
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.
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