Amazon to inject $63mn into logistic arm; this a sign of festive season preparations?

Annual festive season preparations are underway and Amazon is ensuring it has sufficient funds. Based on documents filed with the Registrar of Companies (RoC), the US-based etailers has authorized share capital of its Indian unit to Rs.800 crore from the original Rs.475 crore.

Building ATS before the festive period

A large portion of its funds to India since January have gone to its logistical development. And, with the festive season fast approaching, the etailer is aiming for smooth logistics. Amazon will launch new fulfilment centres in the coming weeks and is aspiring to deliver Flipkart and Snapdeal’s orders too.

Out of its total investments the etailer has made, it is willing to spend around $63 million (400cr.) on Amazon Transport Services (ATS). As the etailer plans on launching its new food retail division in Diwali season there will be more pressure on its delivery network, along with Amazon Prime orders.

Flipkart recently received a generous amount of funding from Softbank, worth 2 billion. But, Amazon is committed to Indian ecommerce and has promised to invest more than $5 billion in its Amazon India unit. It already is ahead in terms of Flipkart in terms of sales. But, could the fickle nature of Indian ecommerce force it to spend its $5 billion before its 5 year plan is up?

Amazon India In The News Marketplace Watch
Share OnShare on FacebookShare on Google+Tweet about this on Twitter

Leave a Reply