Amazon Pay has been becoming quite famous nowadays. It is also gathering a lot of users by providing exclusive cashback, recharge and other offers. And now to strengthen its position, even more, the parent company of Amazon has infused fresh capital into the Amazon Pay division. The amount stands at Rs 700 crores, and they plan to use it to provide more incentives during the festive season.
Details about the funding
The Amazon Pay division of the company received a funding of $95 million from its Singapore based parent Amazon Corporate Holdings and Amazon Inc. Mauritius. Reports suggest that the Amazon pay India division has allotted 770.01 crores equity shares at Rs 10 per share to the existing shareholders.
The company has also received some fundings in the previous years too. In January 2019, it raised Rs 300 Crores while in June it raised another Rs 450 crores from its parent company. Though the company has raised a lot of capital till now, that hasn’t been enough. Rumours suggest that Amazon Pay might receive Rs 10,000 crores to compete with other digital payments app in India like Paytm, Phonepe and GPay.
What does Amazon Pay plan to accomplish?
India is one of the biggest markets for digital payments right now. Almost all the digital payments in the country have grown to be huge startups. Some are even projecting to generate profits in a few years like Paytm. This shows a huge opportunity for other digital payments apps to take advantage of the same.
Like Paytm’s initial days, Amazon Pay is also offering huge cashback offers on its payments platform. This way, it can grab more customers and get a good market share in India. But, to provide such incentives and offers the necessity of having a huge surplus of funds is a necessity and hence the funding.
Moreover, the Amazon festive sale is also here where they can promote their payments platform even more by providing more offers. Amazon’s strategy is quite simple here and seems to be working right. We have to wait and see how interesting the competition gets between these apps and who provides the best offers.
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