In its effort to race past larger domestic rival Flipkart, Amazon has pumped record capital into its main India unit this financial year.
With the latest infusion of Rs 1,950 crore, this exercise has added crucial firepower as the global online retail giant accelerates towards its goal.
Overall, Amazon Seller Services has received Rs 8,150 crore (about $1.3 billion) so far in 2017-18 from its US parent as per filings submitted with the Registrar of Companies. The latest capital infusion is the fourth such exercise.
The frequent capital infusions indicate Amazon India’s increased spending, or cash burn, towards acquiring new customers and growing market share.
The online marketplace is burning through $120 million every month, $75 million on ecommerce and $45 million on its subscription service Prime. This is higher than its average monthly cash burn rate of $80-100 million in 2016, it is understood.
