Amazon infuses $20 mn into logistics arm

Amazon Transportation Services Pvt. Ltd, the logistics arm of e-tailer Amazon India, has received Rs 130 crore ($20 million) from its Seattle, US-based parent, filings with the Registrar of Companies (RoC) show.

The filings did not disclose the purpose of the fund infusion.

In July, Amazon had decided via a board resolution to inject Rs 400 crore ($62.75 million) into Amazon Transportation Services. It could not be immediately ascertained if this $20 million was part of the $62.75 million.

Email queries sent to an Amazon spokesperson did not elicit a response immediately.

Previous RoC filings show that Amazon Transportation Services received Rs 207 crore in March this year and Rs 67 crore in September 2016.

The fund infusion comes right after the festive sale season, when the e-tailer engaged in a no-holds-barred discounting battle with homegrown rival Flipkart.

During the sale period, data from research firm RedSeer showed, Flipkart stole the show, accounting for 58% of overall sales by gross merchandise value, up from 50% in 2016. Amazon’s share, it said, dipped to 26% from 32% last year. Amazon, however, was quick to dismiss the third-party report, with category management head Manish Tiwary saying “there were no credible, recognised research reports in India with a robust methodology and significant sample size to provide objective market share”.

Amazon is doubling storage capacity this year by adding 14 new fulfilment centres as it looks to reduce delivery times in a market where quality of service is fast becoming a differentiator.

Its fulfilment centres currently cover a total of 4 million square feet and offer a storage capacity of over 13 million cubic feet. Currently, over 2 million products are available for immediate shipping through Amazon's fulfilment centre network.

Flipkart has also been ramping up its logistics arm to meet its warehousing needs. In August, The Economic Times reported that it has built nine warehouses to handle large appliances and ensure next-day delivery during the festive season.