The American e-commerce giant Amazon is investing around USD 95.5 Million in its payment unit Amazon Pay, Reuters reported. Various e-commerce platforms are providing enticing discounts ahead of the Hindu festive seasons in India such as Navratri and Diwali.
According to the regulatory documents sourced from business intelligence firm Tofler, the latest infusion comes from its Singapore-based parent company Amazon Corporate Holdings. The part of its investment also comes from Mauritius-based Amazon.com. Earlier this year, the parent company invested around USD 185 Million in Amazon Pay.
Last week, Amazon India launched a new feature that allows users to pay credit bills via Amazon Pay. “As part of our commitment to our customers, we are constantly innovating and creating new experiences to make digital payments seamless across a variety of use cases. This has led us to launch the credit card bill payment facility with which customers can complete a cumbersome process in a single click, using a variety of payment options,” an Amazon spokesperson said.
The company has announced the dates of its Great Indian Festival which goes live on October 17 and for the prime users it will go live on October 16. Meanwhile, its competitor Flipkart has announced its sales day in form of Big Billion days on October 16 and will end on October 21. There are no confirmed dates at the end of Amazon’s sale.
“It is a season of festivities. So, it will be a month-long celebration of festivities. Our sellers are putting together things attractive to various regions,” Manish Tiwary, Vice President, Amazon had confirmed during the virtual press conference.
Amazon had also announced that it will be investing around USD 1 Billion to bring over 10 million small business enterprises online. “Over the next five years, Amazon will invest an incremental USD 1 billion to digitize micro and small businesses across India, helping them reach more customers. This initiative will use Amazon’s global footprint to create USD 10 billion in India exports by 2025,” Bezos said.
This is in addition to its commitment to invest around USD 6.5 Billion in the Indian market. The company is thriving to acquire a major part of the fastest-growing e-commerce and offline market. Currently, the major players who are competing with Amazon are Walmart Inc’s Flipkart and Ambani-led Reliance Industries.
Reliance Industries is aggressively expanding its retail business across India. The company had raised more than USD 20 Billion in its Jio platforms in a time span of 90 days. It has attracted major tech companies such as Facebook and Google to invested in its ventures. Recently, Reliance announced that it has bought the retail and wholesale business of Future Group for USD 3.6 Billion. However, the deal was proved to be a conflict of interest for Amazon.
In 2019, Amazon had bought a 49% stake in Future Coupons Ltd. Future Group owns a 7.3% stake in the latter company. The agreement between the two firms’ states that Future Group is restricted to transfer the shares to the rival entities. According to Amazon, Future Group has breached the deal. Thus, it has sent a legal notice to the Future Group. “We have initiated steps to enforce our contractual rights,” a spokesperson for the American e-commerce giant said. “As the matter is sub-judice, we can’t provide details.”