Amazon has pumped additional Rs 590 crore into its payments arm, Amazon Pay India, in a bid to give an impetus to its core retail sales just ahead of the crucial festival sale — Great Indian Festival Sale — for the online retail company.
According to the Economic Times, Amazon Pay is set to provide huge cashbacks to buyers during the forthcoming festive sales. The report further highlighted that the ecommerce titan will offer high-priced items through equated monthly installments (EMIs) and offer instant loans and so on. The etailer also has plans to start selling insurance in India, as per its filings.
The latest round of funding came from Singapore-based Amazon Corporate Holdings and Amazon.com.incs, according to RoC filings sourced from business intelligence platform paper.vc, the publication mentioned.
Many analysts point that despite the recent increase in import duties on 19 products, including household appliances, the overall spirit of the festive sale will be the same as ecommerce firms have already imported the products that will go on sale this festive season and it is unlikely that these items will come at a higher price.
In a strategic move to strengthen its play in the country’s digital payments space and take on Flipkart’s PhonePe and Paytm, Amazon has invested approximately Rs 1600 crore into its payment business since 2016. Homegrown ecommerce giant Flipkart has made an infusion of Rs 452 crore into PhonePe in July this year. The Bengaluru-based company has committed to invest USD 500 million into PhonePe.
“Our focus is to make digital payments the most trusted, convenient and rewarding choice for customers. We continue to explore ways to do this, in partnership with banks, processors, fintech companies and ecosystem partners,” an Amazon Pay spokesperson told ET.
This year Amazon’s Great India Festival sale is all set to kick off on October 10. Besides, Amazon Prime members will get an early access to the sale starting from 12:00 pm on October 09.
Meanwhile, Amazon and Samara Capital inked a deal last month to acquire the Aditya Birla Retail Ltd’s food and grocery retail chain More for an enterprise value of around Rs 4200 crore. The US-based ecommerce giant would initially hold 49 per cent stake in the supermarket chain, while the Indian private equity fund will hold the remaining 51 percent stake.― Times Now