While Flipkart is still filling all legal documents and other details for the Walmart acquisition, Flipkart India, the wholesale arm of Flipkart, was able to cut down losses in FY17 by 55% when compared with FY16.
According to filings at the Ministry of Corporate Affairs (MCA), Flipkart reported a net loss of $36 million (Rs 244 Cr) for FY17, which represents a 55% decline from the loss of the previous fiscal year that stood at $80.3 million (Rs 544.5 Cr).
On the downside, the e-commerce giant’s total expenses increased significantly by 15%. For FY16, the total expenses of the company stood at $2 billion (Rs 13,722 Cr) compared to the $2.33 billion (Rs 15,813 Cr) in FY17. However, the e-tail business witnessed revenue growth of 19% in the fiscal year of 2017 with revenues standing at $2.35 billion (Rs 15,264 Cr) while the previous fiscal year’s revenues stood at $1.89 billion (Rs 12,818 Cr).
Additionally, Flipkart witnessed a 29% Year-on-Year increase in revenue, registering an astounding $3.09 billion (Rs 19,854 Cr) for the financial year which ended March 2017. On the other hand, Flipkart is still registering record losses, which crossed the $1 billion mark, standing at $1.3 billion (Rs 8,771 Cr), meaning a 68% increase from the total loss recorded in FY16 of $814 million (Rs 5,223 Cr).
Amazon’s Fiscal Year Records
Amazon Wholesale India, Amazon India’s wholesale distributor also witnessed an increase in revenues in FY16-17, recording $1.08 billion (Rs 7,000 Cr) of sales in that period. According to regulatory filings, the global e-commerce giant reported over 105% growth in revenue in FY17, while Amazon Seller Services increased its earnings by 41% with $485.4 million (Rs 3,128 Cr) during the same period.
Additionally, Amazon.co.inc. poured around $385 million (Rs 1,950 Cr) of funding in its Indian operations. With these fresh funds, Amazon Seller Services is boasting a capital of $1.3 billion (Rs 8,150 Cr) for FY18.
Overall Indian e-commerce Market
The Indian e-commerce market is booming at the moment and figures prove it as well. According to a report from Forrester Research, the e-commerce sales in India will reach $64 billion by 2021, growing at a five-year compound annual growth rate (CAGR) of 31.2%.
The Indian e-commerce market is also predicted to cross the $200 billion milestone by 2026, according to a report of Morgan Stanley. In 2016-17, the Indian e-commerce market was worth $33 billion, which represented a 19.1% growth, according to the Indian government’s Economic Survey 2018.