Amazon India has made an investment in Quess Corp Ltd, a solution provider in the logistical, staffing and infrastructural space, which will see it pick up a 0.51 percent stake.
According to an exchange filing made this week, the investment will be going into the company’s subsidiary — Qdigi Services — which provides after sales services for smartphones and other consumer electronics and durables.
“The Board has approved issue of 7,54,437 equity shares of the Company having a face value of Rs 10/- per such equity share to Amazon.com NV Investment Holdings LLC, a category Ill Foreign Portfolio Investor for an aggregate amount of Rs 50,99,99,412 at an issue price of Rs 676 by way of a preferential allotment in accordance with applicable law, and subject to such regulatory/statutory approval as may be required, including approval of the shareholders of the Company,” the company said.
According to experts, this is likely to help Amazon strengthen its value proposition to mobile and electronics customers, picking up an interest in the after sales service business channel.
Qdigi, where Amazon’s investment is going, has a service network of close to 80 walk-in-centers and 200 authorized service providers across India.
Amazon will also receive certain rights in Qdigi, including a right of first refusal that gives it the option to be the first to purchase or buy in Qdigi before Quess tries to sell it to a third party. Quess Corp had acquired Qdigi from HCL Infosystems for $4.7 million last year.―New Indian Express