Amazon’s payments processing arm in India, Amazon Pay India, has received Rs 1,000 crore funding from its holding company Amazon Corporate Holdings.
A regulatory filing by Amazon Pay India said that Singapore-based Amazon Corporate Holdings has been allotted 100 crore shares of Rs 10 each. The overall funding also includes a nominal investment coming from Amazon.com.incs which is based out of Mauritius.
Amazon Pay is US e-commerce giant Amazon’s payments arm, enabling online payment for customers and merchants. Amazon Pay India allows merchants to accept in-store payments at physical outlets through Unified Payment Interface (UPI) QR codes, make digital payments in stores as well as while shopping online. The company is also widening its ambit of credit and other financial services offerings.
Net Loss narrows, revenues up
Meanwhile, Amazon Pay India also reported a net loss of Rs 1,516 crore in the financial year ended March 31, 2021, the company stated in a separate regulatory filing.
The net loss was down by almost 19 percent from the Rs 1,868 crore a year earlier. The drop in net losses was led by a 30.5 percent growth in revenue from operations which came in at Rs 1,716 crore, up from Rs 1,315 crore in FY20.
The payment arm’s total income rose by 30 percent from Rs 1,370 crore in FY20 to Rs 1,786 crore in FY21. Total expenses remained flat at Rs 3,295 crore versus Rs 3,234 crore in the previous financial year.
Revenues fuelled by a surge in online payments
FY21 saw a spike in online payments as customer adoption across online modes saw a growth amid the Covid-19 pandemic and the subsequent lockdowns. That is a key reason for the growth in Amazon Pay India’s spike in revenues apart from the scaling up of services.
The payment arm also has a wallet service for customers choosing to checkout on Amazon India by loading money into the e-wallet. It also provides corporate gift cards in partnership with over 1000 apps.
The company’s Buy Now Pay Later (BNPL) service Amazon Pay Later which has two million customers has also seen a spike in usage. During the Great Indian Festival 2021, the Pay Later service saw a 10x surge in usage as compared to usual business months.
The company is also expanding its financial services offerings in a bid to compete with other fintechs in the space. The platform allows customers to invest in mutual funds, fixed deposits and buy insurance products.
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