After receiving Rs 225 crore from investors, Amazon Pay has received another Rs 225 crore from its US parent through a Singapore unit, taking the total fund infusion in Amazon Pay to Rs 450 crore this year.
In March, the digital payments arm of Amazon India had received Rs 225 crore from Amazon Corporate Holdings, Singapore along with a token investment from Mauritius-based Amazon.com Inc.
The continuous capital flow indicates Amazon’s desire to increase its dominance in India’s e-commerce market. In 2020, it had invested Rs 2,055 crore in its payments unit operated in India.
Amazon Pay competes with leading consumer-focused UPI payments platforms such as PhonePe, Google Pay and Paytm.
Amazon Pay hosts a digital wallet and offers faster refunds and incentives to consumers and third-party merchants such as Swiggy and Dunzo.
It has also launched a co-branded credit card and buy-now-pay-later solutions to consumers when there has been a spurt in online buying due to Covid pandemic.
In the year ended March 31, 2020, Amazon Pay reported 64 per cent growth in revenue to Rs 1,370 crore, while its losses widened to Rs 1,868.5 crore from Rs 1,160.8 crore in FY19.
Digital payments in India are expected to rise fivefold to reach $1 trillion by 2023 due to increase in mobile payments.
Amazon Pay also has empowered over 5 million neighbourhood stores and businesses with its digital payments infrastructure. These small and medium businesses are accepting payments from their customers using Amazon Pay’s QR code.