Amazon Pay India raises Rs 225 crore from parent entities
The company has allotted 225,000,000 equity shares of Rs 10/- each aggregating to Rs 225 crore to the existing shareholders on a rights basis
Amazon Pay India has raised Rs 225 crore from Amazon Corporate Holdings Private Limited, Singapore, and Amazon.com Inc Limited, Mauritius. The company has allotted 225,000,000 equity shares of Rs 10/- each aggregating to Rs 225 crore to the existing shareholders on a rights basis.
As per Amazon Pay India's FY20 filing, the company had received Rs 2,705 crore from Amazon Corporate Holdings Private Limited and Amazon.com.inc Limited. Amazon Pay India had allotted shares to these entities worth Rs 450 crore in June, Rs 900 crore in October, and Rs 1,355 crore in December 2019. These entities were allotted shares worth over Rs 700 crore in September 2020.
Amazon Pay India is the payments unit of e-commerce giant Amazon India. According to the Registrar of Companies filing shared by market intelligence firm Tofler, the company's net loss widened to Rs 1,868.5 crore in FY20 from Rs 1,160.8 crore in the previous fiscal.
Amazon Pay, which competes with Paytm, Flipkart's PhonePe, and Google Pay, has seen a 64% growth in its revenue at Rs 1,370 crore compared to Rs 834.5 crore. The company earns revenue from rendering of services primarily represents transaction fees/commission fees earned from payment processing and joint promotion services. 91% of the company's revenue was earned from external customers compared to 93.70% in the previous fiscal.
Total expenses excluding depreciation jumped to Rs 3234.8 crore from Rs 1994.9 crore. Advertising promotion expenses increased 55.4% at Rs 2212.7 crore for the fiscal ended 31st March 2020 compared to Rs 1423.8 crore in the previous fiscal.
