This is the third tranche of an ongoing fundraising round for Amazon Pay from its parent over the last one year. It raised ₹1,355 crore in January 2020, followed by another ₹700 crore last October. Since its launch in 2016, Amazon Pay has secured ₹5,280 crore in funding.
The fresh capital will help the company compete with well-funded rivals Paytm, PhonePe and Google Pay, in the highly contested digital payments space.
In 2019-20, Amazon Pay’s revenue grew 64% to ₹1,370 crore, while net loss surged to ₹1,868 crore, as the company focussed on growth and customer acquisition.
Amazon Pay’s expenses were at ₹3,238 crore, compared to ₹1,995 crore in FY19. Amazon Pay India cut employee costs from ₹143.9 crore in FY19 to ₹119.4 crore in FY20.
As of January, Amazon Pay had clocked nearly 46.3 million transactions worth ₹4,044 crore on the Unified Payments Interface (UPI) network, with a 2% market share. This was far lower than market leader PhonePe’s 968.7 million and Google Pay’s 853.5 million transactions on UPI.