American retail giant Amazon has reportedly infused Rs 2,800 crore into its India unit Amazon Seller Services, which runs a marketplace that assists sellers to sell their products online, a media report said.
According to Business Standard, the funding is expected to help Amazon take on its rival Walmart-owned Flipkart. The report said that Amazon India allotted 2.8 billion equity shares of Rs 10 each aggregating to Rs 2,800 crore to the existing shareholders of the company.
In April, Amazon.com Inc said it would shut its China online store by 18 July, as the US e-commerce giant focuses on the lucrative businesses of selling overseas goods and cloud services in the world’s most populous nation.
The move underscored how entrenched, home-grown e-commerce rivals made it difficult for Amazon’s marketplace to gain traction in China. Consumer research firm iResearch Global said Alibaba Group Holding’s Tmall marketplace and JD.com controlled 82 percent of the Chinese e-commerce market last year, Reuters reported.
In India, Amazon is expanding its 'Pantry' service to over 110 cities as it bets big on the grocery category to drive growth in business, reported PTI.
Amazon Pantry has been aggressively expanding its presence to smaller cities in the country. The service was available in 40 cities in November last year.
"Consumable is a fast-growing category for Amazon.in. Amazon Pantry has become popular with customers... We have now added more than 70 cities and towns in the last six-seven months to take the total number of cities covered by Amazon Pantry to 110," Amazon India Director Category Management Saurabh Srivastava said in a statement last month.
Through Amazon Pantry, customers get access to about 5,000 products from over 500 brands across categories like staples, household supplies, personal care, and others. In select cities like Bengaluru, Delhi, Mumbai, Chennai, Hyderabad, Kolkata and Pune, it allows customers to choose time slots to schedule order deliveries.
Amazon is betting heavily on the grocery segment in India. The company has also committed $500 million to its food retail venture.
With inputs from agencies
Updated Date: Jun 07, 2019 16:39:37 IST