Amazon Transportation Services (ATS) , the logistics arm of e-tailer Amazon India, has received Rs 130 crore ($20 million) from its Seattle, US-based parent, according to the RoC(Registrar of Companies ) fillings, reported VCCircle.
The latest funding is coming after the end of the festival sales for all the e-commerce company in India. In the meanwhile, Amazon is also cutting prices of products from third-party sellers on its platform to sell the products at lower prices while still giving a full price to the sellers, giving some more competition to its rivals.
In August, Amazon poured in Rs 400 crore into its Indian logistics arm to expand its business operations, just before Amazon India’s annual festive season.
Earlier, Amazon India owned – Amazon Transportation Services (ATS) had received Rs 207 crore from Amazon Corporate Holding Singapore and Amazon Malaysia and Rs 67 crore in September 2016.
During the festivals, this year, the US-based e-commerce major Amazon also infused Rs 1620 crores in a fresh round of funding in its Indian arm to counter other e-tailers, especially rival Flipkart.
However, home-grown e-tailer Flipkart reported having outrun Amazon in first sales. In the first leg of sales, Flipkart reported generating around Rs 5000 crore in its first festive season whereas Amazon did the sale of around Rs 2500-3000 crore. Though, Seatle-based e-tailer disputed the figure.
An overall estimates of the season sale 2017 says that, Flipkart kept the largest market share, leaving behind Amazon, where former’s shares increased to 50 per cent from 45 per cent last year, whereas latter’s share during the festive sales period that has stretched about a month is estimated to have remained unchanged at 35 per cent.
In terms of investments in their subsidiaries, Seattle-headquartered e-commerce marketplace has left behind its rival Flipkart in India. Since fiscal 2015, Amazon has invested Rs 14,940 crore into Amazon Seller Services, as compared to Flipkart’s Rs 8,349 crore investments through Flipkart Marketplace.