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Amazon Invests Rs 400 Crore In Amazon Transportation Services

In the financial year (FY) 2022, Amazon Transportation Services registered a 12.6 per cent surge in its revenues to Rs 4,581 crore

Amazon Invests Rs 400 Crore In Amazon Transportation Services

Outlook Start-Up Desk

POSTED ON January 21, 2023 6:38 PM

Global e-commerce giant Amazon invested Rs 400 crore in Amazon Transportation Services– an Indian logistical arm of the company. The Mauritius and Singapore business entities of Amazon infused the money. 

With this latest development, the company plans to bolster the ground it is going to create in the future in India. The global e-commerce giant is aiming to tap into the delivery business in India and subsequently created Amazon Transportation Service, which will deliver non-amazon products to customers. The Jeff Bezos-led enterprise is targeting the direct-to-consumer (D2C) brands as its prospective users. 

Prior to this, Amazon invested Rs 375 crore in the logistical subsidiary through the same entities on June 16, 2022. With the investment, it acquired 37.50 lakh shares at an issue price of Rs 10. 

In the financial year (FY) 2022, Amazon Transportation Services registered a 12.6 per cent surge in its revenues to Rs 4,581 crore. It also witnessed a 38 per cent increase in its losses to Rs 95 crore. 

Amazon has been in the news for the past few weeks for announcing its plans to fire 18,000 employees globally. PTI reported that nearly 1,000 employees in India would lose their jobs as a part of the global layoffs.

"Between the reductions, we made in November and the ones we're sharing today, we plan to eliminate just over 18,000 roles. Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and People, Experience, and Technology (PXT) organisations," Amazon CEO Andy Jessy, said, addressing the layoffs. 

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