New Delhi: India’s largest online retailer Flipkart Ltd reported a 68% jump in losses to Rs8,771 crore for the year ended March 2017 from the previous year, as the company continued to spend heavily to maintain its slender lead over arch-rival Amazon India.
Revenue at Flipkart, which also owns the fashion retailers Myntra and Jabong and the PhonePe payments platform, rose 29% to Rs19,854 crore, according to filings sourced by paper.vc from Singapore, where Flipkart is listed. The revenue growth slowed from the 50% it reported in the preceding year.
In November, Amazon Seller Services Pvt. Ltd (Amazon India) posted revenue of Rs3,129 crore in the year to March 2017, compared with sales of Rs2,217 crore in the previous year. Amazon Seller Services’s revenue rose 105% in the year, an Amazon India spokeswoman said then, although regulatory filings by the company showed an increase of only 41%. The spokeswoman said the difference in growth was due to one-time charges, which she declined to specify.
The revenues of Flipkart and Amazon aren’t comparable because the companies have different legal structures.
While Flipkart’s losses jumped in the last financial year, the company raised as much as $3 billion from SoftBank Group, Tencent Corp. and others in 2017. In August, the company said it has more than $4 billion in cash.
The company has also reduced its monthly burn rate from the levels of 2015. With the additional financing from SoftBank, Flipkart has prioritised market share gains and revenue growth.