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Ahead of Walmart-Flipkart deal, Amazon invests Rs 2,600 crore in India unit
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Ahead of Walmart-Flipkart deal, Amazon invests Rs 2,600 crore in India unit
May 8, 2018 2:50 PM

Just days before the impending acquisition of a controlling stake in Flipkart by US retail giant Walmart, a unit of Amazon India has received funding of Rs 2,600 crore from its American parent.

Amazon has infused fresh capital into Amazon Seller Services, the company’s marketplace business in India, according to a regulatory filing reviewed by CNBC-TV18.com.

India is a critical market for Amazon Inc. The company has been pumping in billions of dollars as it competes with the home-grown Flipkart and a clutch of smaller players for bigger share of the ecommerce market in one of the world's fastest growing major economies.

Read: Exclusive: Walmart set to buy 75 percent of Flipkart for $15 billion, infuse $2 billion in equity funding

The regulatory filing shows that the resolution for fund infusion by the board of directors was passed on April 26. The board resolved that pursuant to Indian laws … its consent “is hereby accorded for allotment of 260 crore shares of Rs 10 aggregating to Rs 2,600 crore to the existing shareholders on right basis in the ratio of their shareholdings in the company,” said the filing.

Amazon Seller Services has Amazon Corporate Holdings Private Ltd and Amazon.com.incs Ltd as the majority shareholders.

With the latest round of fund infusion, Amazon Inc is estimated to have invested more than Rs 20,000 crore in Amazon Seller Services.

Amazon India received Rs 1,950 crore and Rs 2,900 crore in January 2018 and in November 2017, respectively.

Earlier, Amazon had emerged as a contender for a majority stake in Flipkart. The global etailer had made a formal offer to buy a 60% stake in Flipkart on Monday.

First Published:May 8, 2018 11:50 PM IST

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