Amazon makes huge investment in India to take on Walmart
According to sources it was stated that World's largest e-commerce player Amazon has invested an additional Rs 2,600 crore in its India operations ahead of the US retail giant Walmart taking over the country's e-tail major Flipkart. Amazon Services Ltd in a filing with the Registrar of Companies (RoC) said "The Amazon board has accorded consent to allot 260 crore shares of Rs 10 data-face value aggregating Rs 2,600 crore to the shareholders on rights basis in the ratio of their shareholding".
Meanwhile according to the Chennai-based business intelligence platform Paper.vc, which sourced the regulatory documents, the Seattle-based Amazon infused the additional capital into the Singapore-based Amazon Corporate Holdings Ltd and Amazon.com incs Ltd, which operate Amazon India e-tail business.
Previously Amazon Chief Executive Jeff Bezos had earlier committed to
invest a whopping $5 billion in India to cash-in on the rapid growth in
e-commerce. Moreover this comes at a time when Amazon’s biggest Indian rival
Flipkart is set to sell a majority stake to Amazon’s global rival Walmart for
nearly $12 billion along with selling a minority stake to Google’s parent
Alphabet.