Amazon India Lost Rs 16 Crore/Day This Year; Revenues Jump By 43% In Pandemic Year!
As per regulatory documents, India online marketplace unit of e-tail giant Amazon, Amazon Seller Services, witnessed its losses widening to Rs 5,849.2 crore for 2019-20 fiscal as compared to previous year as expenses grew over 25 per cent.
It had recorded a net loss of Rs 5,685.4 crore in FY19. However Amazon Seller Services’s revenue, grew 43 per cent to Rs 10,847.6 crore in FY20 from Rs 7,593.5 crore in FY19.
According to Registrar of Companies filing shared by Tofler, market intelligence firm said that “The company revenue grew by 43 per cent compared to the last financial year. The company continues to invest in opening new fulfilment centres, and technology advancement”.
Emails sent to the company did not elicit a response.
As per the filing, Amazon Seller Services saw its total expenses rising over 25 per cent from Rs 13,463.1 crore in FY19 to Rs 16,877.1 crore in FY20.
Employee benefit expense increased to Rs 1,382.9 crore (from Rs 1,183.3 crore). Finance cost rose to Rs 108.2 crore in FY20 (from Rs 15.5 crore in FY19).
The ”other expenses” component was at Rs 13,296.3 crore in FY20 as against Rs 10,802.5 crore in FY19.
The company spent Rs 2,640.3 crore in FY20 under ”advertising promotional expenses” as against Rs 2,330.7 crore in FY19.
More From The Regulatory Filings:-
For its customers and sellers, the organization said that it continues to invest on launching new products and services.
It said “The company is confident on its future growth”.
The US-based e-commerce giant has Walmart-backed Flipkart and smaller players like Snapdeal and Paytm Mall as its competitors.
Amazon is also locked in a legal battle with Future Group over the latter’s Rs 24,713-crore asset sale deal with Reliance.
The regulatory filing noted that Amazon Seller Services has received over Rs 8,400 crore in fund infusion during FY20 in three tranches.
Amazon Corporate Holdings Private Limited and Amazon.com.incs Limited were issued shares of Amazon Seller Services worth Rs 2,800 crore in May and Rs 3,400 crore in October last year, and Rs 2,208.01 crore in January this year, as per the document.
The two entities were issued shares worth about Rs 2,310 crore in June this year and Rs 1,125 crore on September 17, 2020, it added.
“Your Board of Directors approved issuance of 92.5 crore equity shares of Rs 10 in its meeting held on September 30, 2020. Your Board of Directors will proceed with allotment of shares post receipt of inward remittance from shareholders,” it added.