Amazon Pay, the payments arm of major e-commerce company Amazon, has received Rs 700.1 million from its parent entity Amazon Corporate Holdings, regulatory documents show.
The new tranche has come through a Singapore-based entity, Amazon Corporate Holdings Private Ltd and Amazon.com. Incs Limited, Mauritius. Amazon Pay (India) has allocated equity shares of Rs 70.01 crore to existing shareholders on an entitlement basis at Rs 10 per share to raise overall consideration.
The new Amazon Pay infusion came after a nine-month gap. In January, Amazon Pay had received Rs 1,355 crore of the holding company. Previously, he had assured 450 crore rupees in June 2019 and 300 crore rupees capital in January 2019 of its parent companies based in Singapore and Mauritius.
Since its inception in 2016, the total funding raised by Amazon Pay from its holding company is now 5,055 crore.
Flipkart and Amazon are receiving funds from their portfolio entities ahead of the holiday season. October and November are the best two trading months for e-commerce platforms. The holiday season also triggers a surge in digital payments as payments companies push discount and refund on their uses in e-commerce transactions.
Amazon Seller Services, Amazon’s online marketplace unit, received Rs 1,125 crore in internal funding from Amazon Corporate Holdings, while Walmart also contributed $ 560.45 million into Flipkart.
Internal financing comes at a time when uses of digital payment modes have increased. People have been avoiding cash transactions as they could lead to the spread of the coronavirus.
In addition to Google Pay, PhonePe, and Paytm, Amazon Pay has become a preferred UPI transaction mode for consumers. According to Entrackr’s sources, had registered 60 million transactions in June, when the volume of P2M was around 17 million.
Expanding the reach of its payments service, Amazon last month released a new feature allowing customers to pay their credit card bills through Amazon Pay.
