E-commerce startups and well set up firms have been on a rise in the past few years in the Indian market. However many of these companies bleed out huge losses as well. E-commerce company Flipkart incurred a loss of Rs 17,231 crore ($ 2.42 billion) during the financial year ended March 2019, though it was lower than the previous fiscal. According to paper dot VC, a platform providing financial data, the company’s revenue grew by 42 percent during this period.
Also, the company lost Rs. 5,459 crores during FY 19 which is responsible for running the company’s marketplace and wholesale business. If calculated. Flipkart lost 15 crores daily. However, during the financial year ended March 31, 2019, the loss of the registered company in Singapore decreased by 63 percent to Rs 17,231 crore, while in FY 2018, the company had a loss of Rs 46,895 crore ($ 6.6 billion).
These losses aren’t a fresh thing. The e-commerce firms in the nation have been consistently making losses over the last decade. Flipkart generated total revenue of Rs 43,615 crore ($ 6.14 billion), including revenue of Rs 42,878 crore received through contracts with customers. Paper VC said that the group’s revenue grew by 42 percent in FY 2018-19 as against Rs 30,644 crore ($ 4.32 billion) in the previous fiscal. Flipkart declined to comment on this outcome.
Flipkart’s rival Amazon, for its part, has done no better. Amazon India’s Seller Services recorded a decline of Rs. 7000 crore within its several subsidiaries in India. Paytm Mall, on the other side, lost Rs. 1,171 crores last year. Shopclues which was valued at billions was sold at just $70 million. Also, Amazon in August accepted to obtain a 49% stake in a unit of India’s Future Group which owns 7.3% of Future Retail, providing the US-based company a 3.58% stake in the retailer which runs more than 1,500 stores in the country. The agreement would benefit Amazon tap into the booming retail market in India, as it independently boosts its e-commerce services.