​​​
  1. Flipkart’s accrued loss bigger than Modi’s allocation for 1 crore affordable houses

Flipkart’s accrued loss bigger than Modi’s allocation for 1 crore affordable houses

Indian e-Commerce major Flipkart's accumulated loss as of March 2017 stood at Rs 24,000 crore, a thousand crore more than Narendra Modi government's entire one year allocated Budget for building 1 crore affordable houses.

By: | Published: March 24, 2018 1:26 PM
Flipkart’s accrued loss bigger than Modi’s allocation for 1 crore affordable houses. (Image: PTI)

Indian e-Commerce major Flipkart’s accumulated loss as of March 2017 stood at Rs 24,000 crore, a thousand crore more than Narendra Modi government’s entire one year allocated Budget for building 1 crore affordable houses in India. According to a filing on Singapore exchanges, Flipkart’s accrued loss more than doubled to Rs 24,000 from Rs 10,000 a year ago. In Budget 2017, Arun Jaitley allocated Rs 23,000 crore for building 1 crore affordable houses by 2019 under Pradhan Mantri Awas Yojna.

As per media reports, Flipkart’s losses increased 68% to Rs 8,771.4 crore during 2017. The e-commerce platform is facing cut-throat competition from global giant Amazon and Alibaba-backed Paytm Mall. Flipkart’s is making loss even after Japan’s Soft Bank via its Vision fund invested about $2.5 billion in the company for a 20% stake in the e-commerce firm in 2017. In March this year, Flipkart India received almost Rs 4,500 crore from its parent company based in Singapore.

Flipkart’s deteriorating financial health made mutual fund investor Valic mark down its valuation to about $7.9 billion in November 2017, much less than $11.6 billion which was after raising funds earlier in 2017. News agency PTI in January reported that with eyes set on the Indian market, global retail giant Walmart could pick up 15% to 20% staked in Flipkart.

Meanwhile, Flipkart said that it is ending its two-year-long hiring freeze and will open 700 vacancies mostly in its tech and data segment. Flipkart was founded in 2007 and run on a complex business model some operating in India and some from Singapore. To step up its business, Flipkart announced Billion Capture+ plan under which will make its debut in Indian smartphone market. Flipkart’s smartphones will compete with devices from the stables of Samsung, Xiaomi, Lenovo, Micromax and others

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. abhijeet jadhav
    Mar 25, 2018 at 1:56 pm
    I didn't understand why the loss was compared with a govt scheme. Was it just to bring politics into it or saying that affordable housing scheme is also doomed. Slightly going off-tract, Govt really thinks that it can build a house on 23k? (23 crors for 1 cror houses)... all sounds funny because that is not practical budget even for a toilet...
    Reply
    1. Vilas Unawane
      Mar 25, 2018 at 12:41 pm
      They have the potential to recover their losses.The affordable home loans may not.We need to create gainful s so that money rolls in a systamitic clean way.
      Reply
      1. Em Jay
        Mar 25, 2018 at 6:20 am
        So are any of the ecommerce s profitable in India? What is the profit/loss made by Amazon, Snapdeal and others. Without such comparison there is no point in saying Flipkart lost that much money. Maybe the whole ecommerce industry is not viable in India yet. And there is corporate bookmakiing where they show loss to avoid paying tax like Ravi Raj mentioned here. The government need to look into that. 24000 crore is not a loss which even Ambani’s and Adani’s can afford let alone the Bansal’s
        Reply
        1. Ravi Raj
          Mar 24, 2018 at 7:53 pm
          This is not loss but a type of fraud by e-commerce giants to avoid paying taxes to government. Actually they show discounts as loss. Suppose an item they showing MRP of 1000rs and ing it for 600. Then they show 400 as loss. Now everyone know that they just fool the customer by in ing the mrp and then giving a discount. As per govt. Tax provisions, they are able to substract the so called losses from their taxable revenue and avoid paying a great amount of tax. Such things cause loss to only govt tax revenue. Otherwise any organisation incurring loss to tune of 24000 crores can't survive.
          Reply
          1. Sanjeet Shukla
            Mar 24, 2018 at 7:43 pm
            It is time government should step in on how these companies evaluate loss. For the sake of saving tax they they are showing various operational costs as loss. That should not be acceptable.
            Reply
            1. Dindayal Kumar
              Mar 24, 2018 at 7:38 pm
              Obsession with Modi??
              Reply
              1. Load More Comments

              Go to Top