E-commerce major Amazon India has doubled its authorised capital to $2.4 billion (about Rs 16,000 crore). According to documents filed with the Registrar of Companies, the firm increased its authorised capital from Rs. 8,500 crore in February.
In July 2014, the firm's authorised capital was Rs. 1,500 crore. During the same time, Amazon's founder and CEO Jeff Bezos had promised it would infuse about $2 billion in its India operation in the course of the next few years, Mint reported.
Authorised capital of a company or authorised share capital of a company simply means the maximum amount of share capital, which a company is authorised to issue to its shareholders, by the company's charter.
Amazon India is reportedly increasing its investment so as to surpass rivals Snapdeal and Flipkart, who are currently struggling to raise funds, Mint added. The company intends to become India's largest e-commerce firm soon.
Last week, the government allowed 100 percent Foreign Direct Investment (FDI) in online marketplace, the Indian Express reported. The new norm could give a boost to e-commerce firms, which seek foreign investments. However, under the new rule, the e-commerce retailers would have to stop giving discounts.
Ever since Amazon lost out to Alibaba holdings co in China, it has become eager to succeed in India. The company invested Rs. 1,980 crore in its Indian wing last month, the second such investment made by the company in less than two months. Amazon had invested capital worth Rs. 1,696 crore in December 2015.
According to the company's filings with the Registrar of Companies (RoC), the U.S.-based e-commerce retailer has invested over Rs. 6,700 crore in its Indian business since January 2015.
India's e-commerce market is reportedly expected to reach about $40 billion by 2020. At present, it is roughly valued at $8-12 billion.
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]