Amazon Pay revenue grew 64% to Rs 1,370 crore, losses increase 61%

Amazon Pay (India) Private Limited, the digital payments arm of the e-commerce giant reported its revenues for the financial year 2019-20 as Rs 1,370 crore, a 64 per cent jump since the last financial year. The company further reported a net loss of Rs 1,868 crore during the same fiscal. This is a 61 per cent increase from the last financial year, show regulatory documents sourced from business intelligence platform Tofler. The company’s total expenses for the fiscal were reported as Rs 3,238 crore.

The payments arm competes with rivals Walmart-owned PhonePe, Alibaba-backed Paytm, and Google's mobile payment service Google Pay. After the closure of the financial year 2019-20, the firm has revised authorised share capital from Rs 6,000 crore to Rs 16,000 crore in an extraordinary general meeting held in September this year. The company has raised a capital of about Rs 3405 crore during and after the closure of the latest financial year from the parent company, for which allotment of shares, have been done in multiple transactions.

Amazon is eyeing to tap multiple sectors in the country ranging from insurance, wealth management to credit through its digital payments arm Amazon Pay. The Jeff Bezos-led firm is also making inroads in India's booming digital payments market.

The company had partnered with Acko General Insurance to offer insurance for two-wheelers as well as four-wheelers. It had also launched Covid-19 health insurance to all its sellers in the country. This year, Amazon Pay launched ‘Amazon Pay Later’, a service that extends a virtual line of credit to eligible customers. It partnered with digital lender Capital Float and The Karur Vysya Bank (KVB) for this. Amazon also recently partnered with ‘Indian Railway Catering and Tourism Corporation’ (IRCTC), to provide its customers with the facility to book reserved train tickets on Amazon.

In the wake of the Covid-19 pandemic, experts say that digital payments have increased as people opt for an easy, convenient, and safe contactless mode of payment.

In another development, Cloudtail India Private Limited, Amazon India's selling arm, reported its revenues for the financial year 2019-20 as Rs 11,413 crore, a 28 per cent jump since the last financial year. 

Owned by Prione Business Services, a joint venture between Amazon and Infosys co-founder N.R Narayana Murthy’s Catamaran Ventures, the company further reported a net profit of Rs 68 crore during the same fiscal. This is a 130 per cent increase from the last financial year, according to the documents sourced by Tofler. The company’s total expenses for the fiscal were reported as Rs 11,313 crore. The indebtedness of the company including secured and unsecured loans and deposits was Rs 819 crore.