26 December 2016, India:
Amazon’s losses in India more than doubled to Rs 3,572 crore during Financial Year that ended March 2016 as it stepped up its investments to dethrone local rival Flipkart as the top retailer in the country.
“The company has invested in establishing infrastructure, opening new fulfillment centers and technology advancement due to which (the) company’s losses increased to Rs 3,572 crore,” Amazon said in the documents. “The company is also investing on launching new products and new services for its customer and its sellers. The company is confident on its future growth.”
Amazon Seller Services also saw its revenues jump 123% to Rs 2,275 crore for the year as well, even as total losses for the unit since it was set up mushroomed to Rs 5,637 crore at the end of FY16. Meanwhile, Flipkart’s sales increased 153% to Rs 1,952 crore during the same period. Both units earn revenues through commissions, advertisements and shipping fees that they charge sellers. But these numbers don’t include revenues of Flipkart’s fashion subsidiary Myntra.
Just last week, Amazon India raised Rs. 2,000 crore and Amazon India spokesperson told ET, “We will invest what it takes to become the customers’ preferred choice in India, and are encouraged that we are India’s largest and fastest-growing e-commerce marketplace. In an industry reportedly flat or negative, Amazon India has continued to show remarkable growth of over 100 percent this year. In an industry reportedly flat or negative, Amazon India has continued to show remarkable growth of over 100% this year,” the spokeswoman added. (Source- ET / Image- Amazon India)