Amazon India logistics in FY18: Revenue grew by 60%, losses increased by 54%
Amazon India logistics arm-Amazon Transportation Services has once again recorded year-on-year growth in revenue and clocked Rs 1,574 crore in FY18. This is an increase of 60 per cent in the company’s revenue from its Rs 996 crore in FY17.
Its other income, mainly from interest on bank loans, was Rs 10 crore, revealed the RoC filing sourced from paper.vc.
The Seattle-based company’s Indian arm has registered a similar growth in FY17 as compared to FY16 when its revenues grew from Rs 661 crore to Rs 996 crore respectively.
During the FY18, Amazon had infused Rs 337 crore in two tranches ie. Rs 130 crore in November 2017 and Rs 207 crore in June 2017.
Further, the filings show that the logistics arm was in an agreement of sale of services with Amazon Seller Services, the marketplace business of Amazon in India, reports ET.
Meanwhile, the company also saw an increase in its expenses from Rs 1,010 crore in FY17 to Rs 1,608 crore in FY18, thus bringing losses to Rs 24.7 crore.
Of the expenses, delivery services cost the highest for the company as it almost doubled from Rs 594 crore to Rs 1,015 crore.
Amazon, which has been aggressively investing in logistics and delivery services counts 67 fulfillment centers in India with the storage capacity of 20 million cubic feet.
Besides, it is also growing downstream logistics capabilities and now has over 200 delivery stations across the country.
The company’s arch-rival Flipkart’s logistics arm Ekart had received over Rs 2,200 crore during FY18 and posed a tough competition to Amazon in all flagship sale during the period. While Flipkart is yet to reveal its revenue figure of logistics arm for FY18, Amazon India growth is a good sign for growing Indian e-commerce industry.
Source: Entrackr
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