The eCommerce retailer led a $60 million funding round for India-based financial services marketplace BankBazaar late last week.
This is Amazon’s second investment in the company, which has raised a total of $79 million in funding rounds, giving it a minority stake in the company, Finextra reported Friday (July 3).
BankBazaar allows Indian consumers to compare and shop for financial products offers from 23 banks, such as online loans, credit cards and fixed deposits.
Amit Agarwal, vice president and country manager of Amazon India, told Finextra: “BankBazaar is a unique and compelling service that aligns with Amazon’s mission in India — to transform the way India buys and how India sells. Amazon looks forward to working with them and supporting their growth.”
With its latest funding, BankBazaar plans to further develop its online and mobile platforms, while also boosting the brand as a high-end destination for financial services, Finextra said.
The investment provides Amazon with a larger stake in the personal finance market. According to TechCrunch, credit card penetration remains low in India, making online payments a pain point, but this move strategically falls shortly after Amazon’s competitor Snapdeal made a similar investment back in April.
“Amazon is an innovative company that perceives consumer needs and innovates on their behalf. As the digital economy in India develops, Amazon will be an important investor in the robust and rapid growth of BankBazaar,” Adhil Shetty, cofounder and CEO of BankBazaar, told The Economic Times.
“With the rapidly evolving online consumer segment across categories, we have seen great demand for this platform. We are currently looking to expand the category as we reinvest all earnings in growing the business intelligently,” added Shetty.