Amazon lost 20% more than Flipkart, Paytm Mall and Shopclues combined losses in FY18
Amazon Seller Services, the Indian e-commerce wing of the US-based online retail giant has posted Rs 6,287 crore loss in the financial year ending on March 31, 2018. The loss figure is almost doubled to Flipkart and 3.5X to Paytm Mall’s loss in the same fiscal.
Walmart-owned Flipkart and Paytm Mall had recently revealed their financial statements with Rs 3,223 crore and Rs 1,800 crore loss respectively.
While Amazon’s losses increased by 30 per cent, the company’s revenue grew by 57 per cent to Rs 4,928 crore in FY18. Of the total revenue, Amazon India earned Rs 3,550 crore from marketplace services to third-party sellers and it made an additional 1,100 crore for providing marketing services.
During the same period, the company’s expenses also increased by 40 per cent to Rs 11,305 crore. Advertising and promotional expenses rose to Rs 2,109 crore, from Rs 1,820 crore, reports ET.
In contrast, Flipkart, Paytm Mall as well as Shopclues posted a loss of about Rs 5,231 crore in FY18.
One of the key factors highlighted in the filing is Amazon India had spent more than 20 per cent of its revenues ie Rs 1,145 crore on legal and professional expenses. This was 47 per cent increase in the legal professional expenses as compared to FY17.
On the other hand, its arch-rival Flipkart had only spent Rs 230 crore on legal expense in FY18.
Besides e-commerce, Amazon has been aggressively investing capital in its logistics and payments arm. The company’s logistics arm-Amazon Transportation Services recorded 54 per cent increase in loss in FY18 while Amazon Pay also incurred an 87 per cent hike in losses during the same period.
Source: Entrackr
To Read Our Daily News Updates, Please visit Inventiva or Subscribe Our Newsletter & Push.
