In a strategic move to consolidate its position in India’s rapidly changing digital payments space, Amazon has invested ₹350 crore in Amazon Pay India, the global e-commerce giant’s ongoing focus on its fintech plans in the country.
The capital injection was made possible by a rights issue, in which Amazon Pay India issued 3.5 crore equity shares to its parent company, Amazon Corporate Holdings. According to Registrar of Companies filings, this is the fourth in a series of investments, after ₹300 crore in November 2024 and ₹600 crore in June 2024.
The expansion is just around the corner as the Indian online payments market is becoming increasingly competitive. Flipkart-funded Super. money is reported to look to raise $35-40 million from third-party investors, with new momentum in the industry.
Despite Amazon’s steady investments, its digital payments arm continues to face headwinds. Amazon Pay’s position in the Unified Payments Interface (UPI) ecosystem slipped to eighth place as of March 2025, according to data from the National Payments Corporation of India (NPCI). The platform currently trails major players such as PhonePe, Google Pay, Paytm, and others, commanding a modest 0.6% market share. In contrast, PhonePe and Google Pay together account for about 85% of UPI transaction volumes.
Nevertheless, Amazon Pay has been gradually expanding its offerings. In February 2024, it secured a Payment Aggregator (PA) license from the Reserve Bank of India, enabling broader merchant transaction capabilities. This followed its earlier Prepaid Payment Instrument (PPI) license approval.
These days, the platform offers several services, including handling UPI payments, bill settlements, and insurance premium processing. By collaborating with well-known platforms like BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera, it has also branched into travel, entertainment, and personal finance management.
Financially, Amazon Pay India reported a 9.22% increase in operating revenue for FY2023–24, reaching ₹2,286 crore. Notably, the company reduced its losses by 39%, bringing them down to ₹911 crore from ₹1,499 crore in the previous fiscal year.
With the Indian fintech market experiencing regulatory upheavals and competitive funding moves, Amazon’s fresh capital infusion represents a bet on India’s long-term growth and its widening digital economy. However, whether such an infusion will allow Amazon Pay to regain market share from incumbent players will only be revealed in time.
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