Amazon invests Rs 240-crore in Indian food and grocery unit
Category: #retail  By Pankaj Singh  Date: 2019-04-01
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Amazon invests Rs 240-crore in Indian food and grocery unit

The Indian government has made it clear that FDI in the food retail sector will not get stalled by the modified FDI guidelines specifically for the ecommerce marketplaces.

Amazon, the Seattle-based American multinational tech-giant, has reportedly invested Rs.240 crore (approximately $35 million) in the company’s Indian food-only retail corporate sector. It is known to function as the vendor of packaged food items and groceries in the local ecommerce marketplace of Amazon.

As per the sources, the firm’s investment has come more than a month after India’s revision of guidelines for FDI in ecommerce which had initially put the ecommerce firm’s food retail investments in India at stake.

As per the regulatory filings, it is revealed that Amazon Retail India has obtained a whopping amount of Rs240 crore from its existing shareholder Amazon Corporate Holdings which is a Singapore-based unit that is engaged in food retail in the ASEAN nations. It is claimed that the investment also comprises of a token contribution from the US-based parent organization, Amazon.com.

The company’s capital investment in the business unit is an indication that Amazon is proceeding with its pre-decided plan of extending the food and grocery retail business in India, the segment that it claims will have an upsurge in shares.

A source close to the company has been reported to say that the food retail business is presently obliging the demand of customers in more than 100 cities across India. Furthermore, the path to scale up the business by including more selection and increasing customer service by adding extra pin codes is also underway.

Experts claim that food and grocery contributed to a lion’s share in India’s complete retail market in 2018.  The latest cash infusion in Amazon Retail India (ARIPL) has come after Big Basket received $150 million in a funding round.

The government has made it clear that FDI in the food retail sector will not get stalled by the modified FDI guidelines specifically for the ecommerce marketplaces.



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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