Amazon boosts India unit with $308 million infusion

Singapore arm contributes to capital

(FILES) In this file photo taken on September 18, 2018 an employee of Amazon India walks out of a security gate at Amazon's newly launched fulfilment centre on the outskirts of Bangalore. - India's commerce ministry has announced it will tighten e-commerce rules affecting Indian online sales leader Flipkart -- recently acquired by US retail giant Walmart -- and US rival Amazon from selling goods from companies in which they hold an equity stake. (Photo by MANJUNATH KIRAN / AFP)

Amazon.com Inc. has invested $308.02 million in Amazon Seller Services, an Indian unit, strengthening the business at a time when more people shop online in a bid to avoid crowded public places.

Amazon Singapore made a significant portion of financing, data from business intelligence firm Tofler showed.

The company’s Indian arm in May said it would hire 50,000 temporary workers to meet a surge in online shopping in the country.

Seller network

Amazon, which competes with Walmart Inc.’s Flipkart in India, has also been expanding its seller network.

Indian laws allow foreign e-commerce companies to operate as “market places,” connecting buyers with sellers online.

As India went into a nationwide lockdown to keep COVID-19 under control, Amazon encouraged small shops to join as sellers on its platform in a bid to boost local businesses and expand its reach.

Jeff Bezos-led Amazon.com in January announced a $1 billion investment to bring more than 10 million small businesses online in India by 2025.