Amazon India marketplace’s operational revenue is almost double of that of Flipkart’s marketplace. But its loss is 5.4x of Flipkart’s marketplace.
The Amazon Indian marketplace arm saw its operational revenue grow by 57.5 percent to Rs 4,928 crore in FY18, from Rs 3,128 crore in FY17, documents filed by the company with the Registrar of Companies (RoC) shows. While Flipkart’s marketplace posted an operational revenue of Rs 2,790 crore for the financial year 2018, compared to Rs 1,882 during the previous financial year, showing a growth of around 48 percent.
Despite an increase in revenue, that Amazon India marketplace that is owned by Amazon Seller Services, posted Rs 6,287 crore (almost $1 billion) loss in the financial year 2018, compared to Rs $4,830 crore of loss in 2017.
While the Amazon India marketplace saw its loss increase to almost $1 billion, Flipkart’s marketplace, Flipkart Internet Private Ltd, narrowed its consolidated loss to Rs 1,160 crore for the financial year 2018, compared to a total loss of Rs 1,640 crore in the previous fiscal.
Both the ecommerce giants are pumping in more money, as competition intensifies, with both claiming they leading in the Indian market.
Walmart recently bought 77 percent of Flipkart’s stake for $16 billion, valuing the company at a whopping $21 billion.
In another filing recently by the group company, Amazon’s Indian digital payments arm, Amazon Pay (India) Private Ltd revealed that it had incurred a loss of Rs 334.2 crore in the financial year 2018, an increase of 88 percent compared to Rs 178 crore it incurred in the previous financial year 2017.
To Read Our Daily News Updates, Please visit Inventiva or Subscribe Our Newsletter & Push.