Flipkart Group posted a whopping increase in its net loss by more than five times to Rs 46,901 crore in FY 2018 from Rs 8,771 crore in FY 2017.
Profitability for Flipkart still seems to be out of sight as the group posted a whopping increase in its net loss by more than five times to Rs 46,901 crore in FY 2018 from Rs 8,771 crore in FY 2017, according to the ROC filings sourced by business signals platform Paper.vc.
However, Flipkart Group’s revenue increased by a little over 1.5X to Rs 30,164 crore in FY18 from Rs 19,854 in the preceding fiscal year.
Major areas of expense have been the purchase of products for sale (Rs 27,375 crore), employee benefits expense (Rs 2,683 crore), finance costs (Rs 40,937 crore), and other expenses (Rs 6,013 crore).
The group saw its advertising and business promotion expenses shot up to Rs 1,849 crore from Rs 1,188 crore under other expenses.
On the other hand, Amazon India’s marketplace arm Amazon Seller Services had its losses piled up to Rs 6,287 crore in FY18 from even as its revenue increased to Rs 5,018 crore in FY18, as per its ROC filings.
For its wholesale arm Amazon Wholesale India, the company’s revenue increased to Rs 12,224 crore in the last fiscal year.
The two e-commerce giants in India are yet to respond the draft e-commerce policy launched last week that aims at regulating cross-border data flows, setting up storage facilities locally and establishing a ‘data authority’ to devise a framework for sharing community data.
“We look forward to an enabling policy to serve over 4.5 lakh sellers and a policy that will allow us to scale up our logistics network, create new jobs and infrastructure, digitise payments and delight our customers,” PTI quoted an Amazon spokesperson as saying.
Pertaining to keeping an eye on counterfeit products, the government in the draft has said that “if a seller is found to be selling counterfeit products, the marketplace should blacklist that seller from selling on its platform for a specified period,” under its anti-counterfeiting measures.
However, online sellers’ body All India Online Vendors Association (AIOVA) has found the draft e-commerce policy empowering online marketplaces to blacklist sellers if found selling counterfeit products, to be “very alarming”.
“This is very alarming because we have received a lot of complaints in the past that sellers were blacklisted just because one product that they didn’t even know was counterfeit,” an AIOVA spokesperson told Financial Express Online requesting anonymity.
In a separate development, US-based Amazon on Monday reportedly brought former PepsiCo Inc Chief Executive Officer Indra Nooyi on board as a director.