Why has Amazon Pay received a big fund infusion from its parent, Amazon?

Amazon Pay, which is a fast growing digital payments player in India, has secured fund infusion to the tune of Rs.700 crore from its parent, global powerhouse, Amazon. These funds have been routed through the Mauritius route.

Amazon Pay is a critical business component for Amazon, which eventually looks to not only dominate the ecommerce ecosystem in India but also the payment platform for transfer of money. Since inception, Amazon Pay has raised funds worth Rs.5000 crore from Amazon.

Amazon started purely as a wallets player but has now pushed itself into the Unified Payments Interface or UPI space. UPI is the fastest growing payment story in India and Amazon drives a large chunk of UPI volumes through its in-app payments for sales on its world renowned e-commerce platform.