Amazon Pay, the payments arm of e-commerce major Amazon, has received Rs 700.1 crore from its parent entity Amazon Corporate Holdings, regulatory filings show.
The fresh tranche has come through a Singapore-based entity Amazon Corporate Holdings Private Ltd and Amazon.com. Incs Limited, Mauritius. Amazon Pay(India) has allotted 70.01 crore equity shares to the existing shareholders on a rights basis at Rs 10 per share to raise the total consideration.
The fresh infusion for Amazon Pay has come after a gap of nine months. In January, Amazon Pay had received Rs 1,355 crore from the holding company. Previously, it had secured Rs 450 crore in June 2019 and Rs 300 crore capital in January 2019 from its Singapore and Mauritius-based parent entities.
Since its inception in 2016, the total funding raised by Amazon Pay from its holding company now stands at Rs 5,055 crore.
Flipkart and Amazon are receiving funds from their holding entities ahead of the festive season. October and November are the two best business months for e-commerce platforms. The festive season also triggers a spike in digital payments as payments companies push discount and cashback on their usages on e-commerce transactions.
Amazon seller services, the online marketplace unit of Amazon, had recently received Rs 1,125 crore in internal funding from Amazon Corporate Holdings while Walmart also pumped in $560.45 million in Flipkart.
The internal funding comes at a time when the usages of digital modes of payments increased. People have been avoiding cash transactions as they could lead to the spread of the coronavirus.
Besides Google Pay, PhonePe, and Paytm, Amazon Pay has emerged as a preferred UPI mode of transaction with consumers. According to Entrackr’s sources, it had recorded 60 million transactions in June in which P2M’s volume was at around 17 million.
Extending the scope of its payments service, last month Amazon launched a new feature which allowed customers to make their credit card bill payments through Amazon Pay.