Amazon invests Rs 400 crore in India logistics arm

US-based ecommerce company Amazon has infused an additional Rs 400 crore in its local shipping arm Amazon Transportation Services, documents sourced from business intelligence firm Tofler showed.

It invested the funds on January 6.

The money came from Amazon’s business entities in Singapore and Mauritius.

In June 2022, Amazon Transportation had received around Rs 375 crore, ET had reported.

The fund infusion comes at a time when Amazon is increasing its seller base as well as product catalogue on the platform from sellers.

Amazon India had said previously it aims to onboard at least a ‘couple of million more’ sellers and increase the user base to around 500 million here.

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It has over a million sellers in the country and the logistics unit helps deliver their products to consumers.ET has reported previously that Amazon had decided to open up its logistics business to other ecommerce companies, competing with the likes of third-party logistics players like Delhivery, Ecom Express and Xpressbees.

Amazon Transportation reported total revenue of Rs 4,581 crore in FY22, a 12.6% jump from the year-ago period. Its total revenues were Rs 4,068 crore in FY21.

Net losses for the shipping services arm also widened by over 38% to Rs 95 crore in FY22 from Rs 68.7 crore a year ago.

Rival Flipkart has also opened up its logistics arm, e-Kart, to other ecommerce businesses.

Amazon in India as well as globally has been sacking employees.

Chief executive Andy Jassy said that over 18,000 people would be laid off across its various businesses worldwide. In India, around 1,000 employees are being fired, according to sources aware of the matter.

It has shut down various businesses in the country, including its food delivery, edtech and wholesale distribution units.

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