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Amazon ‘Flips The Kart’: Indian E-Commerce Giant Reports Huge Rise In Losses
Flipkart Office In Bangalore (Hemant Mishra/Mint)
In its fight against Amazon, Flipkart recorded 70 per cent higher losses (Rs 3,200 crore) for the financial year ending on March 2018, Times Of India has reported.
Flipkart India, the wholesale arm of the online retailer, saw losses (Rs 2,000 crore) rise by 750 per cent . In the year 2017, Flipkart India had recorded a loss of Rs 244 crore. Flipkart Internet which runs the online marketplace of the parent company reported losses of about Rs 1,100 crore. The losses of Flipkart Internet fell by 30 per cent.
Flipkart is doing aggressive marketing and discounting to take on Amazon. Senior Analyst at Forrester India, Satish Meena observed that Amazon has narrowed its gap with Flipkart in the recently held annual flagship sale. This indicates that Amazon is aiming to corner more market share. Amazon has been spending aggressively in India’s e-commerce sector. Much of the $5-billion investment committed to India is said to be exhausted.
As Flipkart is now a part of Walmart, it is the biggest e-tailing bet across the world. Analysts expect the loss-making trend to continue till 2020. The competition with Amazon is only likely to intensify in the coming years.
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