Startups

Amazon Infuses INR 400 Cr In Its Indian Logistics Subsidiary


The investments occurred on January 6

Amazon’s business entities in Singapore and Mauritius infused the money

Last June, Amazon had infused INR 375 Cr in its Indian logistics subsidiary

Ecommerce major Amazon has invested an additional INR 400 Cr in its Indian logistics arm Amazon Transportation Services. The investments occurred on January 6.

Amazon’s business entities in Singapore and Mauritius infused the money, ET reported citing data from Tofler.

Last June, Amazon had infused INR 375 Cr in its Indian logistics subsidiary through its Singapore and Mauritius entity. The investment occurred on June 16th and a total of 37.50 Lakh equity shares were allotted at INR 10 apiece.

The investment comes at a time when Amazon is reportedly set to make a debut in the logistics business in India by delivering non-Amazon orders with a new vertical called Amazon Shipping.

To start the new vertical, the company has tapped direct-to-consumer (D2C) brands, logistics aggregators and other businesses who take direct orders from consumers.

Amazon Transportation Services reported a 12.6% increase in its total revenues to INR 4,581 Cr in FY22. Its losses increased by 38% to INR 95 Cr in the financial year.

It is to be noted that Amazon’s archrival Flipkart also extended its logistics arm eKart’s services to small, medium and large (SMB) businesses and other brands last year, while it earlier had limited eKart’s services to its own operations.

In the logistics business, Amazon is in competition with Flipkart’s eKart, along with other players such as Delhivery, Ecom Express, Shiprocket and Xpressbees.

According to Inc42’s August 2022 report on, “The State Of Indian Startup Ecosystem”, the overall intercity road logistics market in India is poised to be worth $299 Bn by 2025. Around 63% of the total demand is poised to be from on-demand intercity logistics.

Amid economic downturn, Amazon India faced difficulties last year. As it had to shut down its food delivery and edtech verticals, and pulled out of the B2B wholesale distribution space in November.

It also faced regulatory pressure while facing allegations of it preferring certain sellers on its platforms as well as copying products of retail brands for its private label business. The CCI and other agencies have been investigating these allegations over the past two years.

Recently it was reported that Amazon is set to fire around 1,000 employees in India as part of its global layoffs which are set to impact as many as 18,000 of its global employees. The layoffs at Amazon resulted in the elimination of various roles across tech, human resources and Prime verticals in India.



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