Amazon has filed to increased the authorised share capital of the company to about INR 800 crores from INR 475 crores as per reports by VCCircle. Increasing the authorised share capital hints that the company is looking to allocate more funds.
The decision to raise funds was a board’s decision in July and the development was filed recently ahead of the festive season sale.
Amazon India has been working on expanding its warehouse and logistics unit since last year. It had earlier invested INR 160 crores in its wholesale business car – Amazon Business last December before raising 2000 crores from its parent company Amazon.com
Early this year, the company also received approval from RBI for its payment wallet Amazon Pay. The company was also discussing on multiplying its investment on seller infrastructure and also doubled its storage capacity over the previous year.
Late July it was also reported that Amazon India was ready to offer its logistics business to registered users even if orders are placed through rival marketplaces like Flipkart and Snapdeal or for their offline distribution.
The fresh capital invested in its logistics unit, will further strengthen its hold and offer better services to customers especially Prime users which was opened this year at an affordable price for the Indian customers.
Amazon has launched its Great Indian Sale today and will end it on 12th August. During the festive season, its India rival Flipkart had also launched its Big Freedom Sale today and will be offering great deals and discounts on major brands until 11th August.
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