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Taking on Flipkart: Amazon invested $1 bn in India e-commerce arm since Jan

Amazon reported that its international losses soared to $936 million in the three months that ended September

Alnoor Peermohamed  |  Bengaluru 

Amazon India plans to set up experience centres in several Shoppers Stop outlets as part of the Rs 179-crore deal with  the retailer

US online retail giant has invested Rs 6,200 crore (about $1 billion) in its e-commerce business in India since the beginning of this calendar year as it competes with cash-flush rival

Seller Services, largest arm of the US company here, has seen three rounds of capital infusion this year. The largest, of Rs 2,900 crore, was at end-September, according to official filings.

This brings the total pumped into this arm to Rs 17,839 crore ($2.7 billion). The figure shows how quickly has ramped up its investment in Indian e-commerce, with $1 billion of that being invested in 2017. The firm has also seen its authorised capital rise from Rs 16,000 crore to Rs 31,000 crore, which could signal the coming in of a lot more investment. aims to overtake Flipkart, which claims to have a cash reserve of $4 billion.

Globally, reported that its international losses soared to $936 million in the three months that ended September, largely on account of its investment in India. It did not give the exact figures for India but documents filed with the registrar of reveal two investments in September amounting to Rs 4,520 crore ( $700 million) in Seller Services.

is also heavily investing here in its cloud computing division, its information  technology services unit (oldest one in the country) and more recently in its payments arm. Late last year, put Rs 1,381 crore into Data Services and has also invested Rs 382 crore in Pay (India). Earlier this year, the firm also got a green light from the government for investing $515 million in multibrand ‘food-only’ retailing.

These increased investments come at a time when rival has raised $3.9 billion in two funding rounds, from SoftBank, Tencent and Microsoft earlier this year. The company says its cash pile of $4 billion will be used to counter the growth of global rivals in the country.

Paytm, which runs its own e-commerce platform, got a massive $1.4 billion from earlier this year. The company’s largest investor is Alibaba, biggest global rival for in the e-commerce business.

Amazon’s global chief, Jeff Bezos, has committed to investing $5 billion in e-commerce in India, and their India head, Amit Aggarwal, has on numerous occasions said the company won’t limit its investment to that figure. However, with India beginning to suck an ever larger portion of Amazon’s global earnings, it’s a matter of time before investors begin asking for investment detail numbers.
CAPITAL INFUSION

The authorised capital of the e-com unit was raised to Rs 31,000 crore from Rs 16,000 crore
The firm has also invested in other units such as payments, IT and cloud services
raised $3.9 bn in two rounds from Softbank, Tencent & Microsoft this year

First Published: Thu, November 16 2017. 08:42 IST
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