BENGALURU: Amazon is investing Rs 51 crore in Quess Corp, a provider of logistical, staffing and infrastructural solutions to businesses, for a 0.51% stake, the company disclosed in a regulatory filing.

The investment will be going into the company’s subsidiary Qdigi Services, which provides after sales services for smartphones and other consumer electronics and durables. This will help Amazon significantly expand is value proposition to customers across the entire lifecycle of electronics from sales to after sales to repair services.

In 2014, Flipkart acquired Jeeves, a player in the after-sales service and installation business. In 2017, Flipkart it also acquired F1 Info Solutions, an electronics service providers that specialized in repair and refurbishment of mobile phones. Electronics and large appliances constitute a bulk of ecommerce sales, and one of the biggest barriers to consumer purchases of these products online has traditionally been the post sale delivery , installation and servicing service.

Qdigi has a service network of close to 80 walk-in-centres and 200 authorised service providers across India. As a part of the deal, Amazon has also taken certain rights in Qdigi including a right of first refusal that gives it the option to be the first to purchase or buy in Qdigi before Quess tries to sell it to a third party, non-compete and a right to acquire it in the future.

The exact rights were not disclosed in the filing made to the Bombay Stock Exchange on Friday. Quess Corp acquired Qdigi from HCL Infosystems for $4.7 million last year. Quess shares were up roughly 8% to Rs474.25 in noon trading hours.

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