Amazon Seller Services funding

amazon seller services funding

Amazon Seller Services has received a fresh capital infusion of Rs 915 crore (approx. $125 million), papers filed with the Registrar of Companies revealed.

The investment was led by Singapore-based Amazon Corporate Holdings, with parent entity Amazon.com Inc making a token investment, both of which were allotted a combined 915 million equity shares at a value of Rs 10 each.

This is Amazon’s first investment in its India marketplace unit this year, which comes amid concerns of stumbling growth in the e-commerce sector due to low consumer sentiment and localized restraints due to the deadly second wave of the pandemic.

The investment follows Amazon’s latest announcement of creating a $250 million venture fund – Amazon Smbhav Venture Fund – to back startups and entrepreneurs centering on digitization of small and medium-sized businesses (SMBs) in the country.

Amazon had invested Rs 2,310 crore in Amazon Seller Services in June last year, shortly after the government-mandated lockdowns had ended and the e-commerce sector was beginning to observe a strong improvement in sales, as consumers prefer to shop more from the safety of their homes.

Although an additional hike in the growth momentum of e-commerce is comprehended in categories such as grocery and pharmaceuticals, large categories such as smartphones, electronics, and fashion are expected to be observing a reduction due to the ongoing pandemic, and restrictions on e-commerce marketplaces in Maharashtra and Delhi.

Amazon Seller Services, which earns money by charging a commission on the sale of products on its platform, besides other services such as logistics, warehousing, and marketing, recorded a revenue of Rs 11,028 crore in the year that ended March 31, 2020, and a loss of Rs 5,849 crore in the same period.

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