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Flipkart India, the wholesale arm of the online retailer, saw losses of 750,000 to over Rs 2,000 crore, while Flipkart Internet – the entity that runs the online marketplace – reported losses of about Rs 1,100 crore, which is a drop of just under 30% compared to the year before. Flipkart India's losses for the financial year ended 2017 had come down to about Rs 244 crore, compared to Rs 545 crore in the year ended March 2016.
This rising loss in the latest year is a reflection of the aggressive marketing and discounting Flipkart has had to do to take on its American rival. With Flipkart now part of Walmart, analysts expect the loss-making trend to continue till 2020, as competition with Amazon is only expected to intensify. For Walmart, Flipkart is its largest e-tailing bet across the globe.
The registrar of companies (RoC) documents were sourced from Tofler and Paper.vc business intelligence platforms.
Flipkart India's revenue grew 42% in fiscal 2018, while the marketplace reported a 36% jump in revenue. Both these companies witnessed their total expenses – Flipkart India's rose by over 50%. Among the expenses, employee benefits, Rs 330 crore, as against Rs 166 crore in the previous year.
Amazon, too, has been spending aggressively in India. Much of the $ 5-billion investment committed to India is said to have been exhausted.
"Flipkart is now owned by Walmart and there is no reason to believe that the pace of investment will slow down in 2019, or even the year after that. Amazon said, "Flipkart will try to defend aggressively too," said Satish Meena, senior analyst, Forrester India. A Flipkart spokesperson did not respond to queries sent by you.
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