Amazon, Flipkart Lost Rs 9522 Crore In Last 12 Months, Even As Revenues Increase!
As per the reports, Flipkart and its rival, Amazon has been investing millions of dollars on their various units like infrastructure, marketplace and supply chain management as well as marketing and promotion.
Also the founder of Amazon, Jeff Bezos had committed to invest around USD 5 billion in the Indian economy in 2016.
How Did Amazon Market Unit Perform?
The online marketplace unit of the e-commerce giant in India, Amazon Seller Services, has reported its loss of Rs 5,685 crore for 2018-19.
As per the report form business intelligence platform Tofler, the figure represents a decrease of 9.5% from the last fiscal year, when Amazon reported a loss of Rs 6,287.9 crore.
How Did Amazon Seller Services Perform?
Compared to the previous financial year, Amazon Seller Services reported a revenue gain of 55% which is Rs 7,778 crore in 2018-19.
Amazon’s losses Rs 7,000 crore coupled with its other entities in India in fiscal 2018-19.
As per the report, the B2B arm of the American e-commerce giant dotted its revenues as Rs 11,250 crore for the financial year 2018-19. Which is 8% lower than last fiscal year.
Although the loss has spread to around Rs 141 crore during the fiscal year 2018-19 which was Rs 131.4 crore in last fiscal 2017-18.
How Did Amazon Pay Perform?
According to Tofler, the companies payment unit – Amazon Pay India also reported a rise in loss as it spread to 1,160.8 crore in financial year 2018-19 which was 334.20 crore in FY18.
Although this unit’s revenues is almost doubled to Rs 834.5 crore for financial year 2018-19 compared to the earlier fiscal year.
How Did Amazon Transportation Perform?
As per the report, Amazon Transportation Services reported a 31% hike in revenues at Rs 2,079 crore, which was reported a net loss at Rs 27.5 crore in 2018-19.
Although Amazon did not given any comments yet.
How Did Flipkart Internet Unit Perform?
Flipkart Internet unit reported a 40% rise in losses at Rs 1,624 crore for fiscal 2018-19 which was around 30% in the last fiscal year.
This figure shows that the company is working on expansion under the new leadership of Walmart.
According to filings acquired form corporate affairs ministry, the operating revenues show a rise of 51% at R 4,234 crore during the financial year 2018-19.
In Aug 2018, Us-Retail-giant Walmart had obtained a 77% stake in Flipkart for $ 16 billion.