Walmart India FY19 net loss soars 89%

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Published: October 24, 2019 2:32:03 AM

With close to 530 million internet users, India has the world's second-largest internet user base.

Recently, e-commerce firms have come under the government scanner due to violation in FDI norms.

The net loss of Walmart India increased by a whopping 89% to Rs 171.68 crore for the year ended March 2019 compared to the previous year. Revenue from operations grew 11% to Rs 4,061.16 crore, according to the company’s RoC filings sourced from business signals platform Tofler.The company that operates 27 Best Price wholesale cash and carry stores reported expenses of Rs 4,266.88 crore in FY19, compared with Rs 3,778.47 crore in FY18, the data showed.  To grab a pie of the retail market, US parent Walmart acquired e-commerce firm Flipkart in a $16-billion deal last year.

Amazon and Flipkart command close to 80% market share in the domestic e-commerce sector, analysts said. India’s cheap data and expanding smartphone usage are nudging consumers to e-tail, making it an attractive market for Walmart. According to analysts at market research firm RedSeer Consulting, an estimated 65 million users on an average adopted internet every year from 2016 onwards.

With close to 530 million internet users, India has the world’s second-largest internet user base.

Recently, e-commerce firms have come under the government scanner due to violation in FDI norms. The government’s revised FDI norms bar e-commerce firms having foreign investment like Flipkart and Amazon from selling products of entities in which they hold stake in or whose inventory they control. The government is also in the process of formulating an e-commerce policy that proposes regulating cross-border data flows, setting up storage facilities locally and establishing a data authority to devise a framework for sharing data.

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