Walmart-owned Flipkart Internet Private Limited has seen its net loss widen 51% to Rs 4,362 crore in FY22 even as revenues rose 34% year-on-year to Rs 10,477 crore. The company’s operating loss or Ebitda (earnings before interest, taxes, depreciation, and amortisation) loss jumped to Rs 3,925 crore, up from Rs 2,267 crore in FY21, according to regulatory filings accessed via Tofler.

Profits were pulled down by a surge in costs due to rising transportation, advertising, marketing and legal charges. A&P (advertising & promotional) expenses were up over 80% in FY22 to Rs 1,946 crore.

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In comparison, Amazon Seller Services Private Ltd’s losses narrowed to Rs 3,649.2 crore in FY22 from Rs 4,748.1 crore in FY21, data from Tofler showed. Revenues from operations went up by 32.4% to Rs 21, 462 crore.

In a report earlier this year, analysts at Bernstein had said they don’t believe e-commerce in India will be a “winner takes all” kind of market given the different categories and customer segmentation. “Amazon, Flipkart remain leaders driven by category strengths in mobiles & consumer electronics,” they wrote.

They pointed out that Flipkart leads in apparel while JioMart is driving scale in grocery led by its offline strength. They added that new players are emerging focused on Tier2+ markets, like Meesho, and that Nykaa is driving leadership in niche categories like beauty.

Amazon India’s report card, after a decade in India and $6.5 billion worth of investments, they believe, is mixed. The analysts pointed out that India is one of Amazon’s biggest overseas markets and also one of its fastest growing with a best-in-class customer experience and large Prime customer base.

“Yet this growth has come at a high cost of over $6.5 billion+ invested to-date while profitability remains elusive (-5-10% Ebitda margins),” they said.

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Flipkart on Friday said revenues mainly came from operations such as e-commerce, information technology-enabled services, marketplace and related support services, including corporate agent services for insurance. The company ventured into newer businesses like video streaming, distribution and hosting services by developing original content or using the content of other service providers.

Myntra, a Flipkart group company, reported bigger losses, up 39% to Rs 597 crore in FY22. The profits were dragged down by an increase in logistics costs and other promotion and ad-related spends. The apparel player reported a 46% increase in operating revenue to Rs 3,501 crore in FY22.