Amazon India's ecomm arm narrows FY19 loss to Rs 5,685 Cr
Amazon Seller Services, the online marketplace arm of the ecommerce giant in India, has narrowed its loss to Rs 5,685 crore for 2018-19. This is a 9.5 percent decrease from the last financial year, when the company had posted a loss of Rs 6,287.9 crore, as per documents sourced by business intelligence platform Tofler.
Amazon Seller Services saw revenues growing 55 percent to Rs 7,778 crore in 2018-19 over the previous fiscal, it added. Coupled with its other entities in India, Amazon's losses in India in FY19 were over Rs 7,000 crore.
Amazon Wholesale India, the B2B arm of the American ecommerce giant, reported its revenues for financial year 2018-19 as Rs 11,250 crore, an 8 percent fall since the last financial year. The entity's loss, however, widened to about Rs 141 crore during the same fiscal, from Rs 131.4 crore in 2017-18.
Amazon Pay India, its payments arm that competes with the likes of Paytm, Flipkart's PhonePe, and Google Pay, recorded a manifold rise in losses. Its loss widened to Rs 1,160.8 crore in FY19 from Rs 334.20 crore in FY 18, as per Tofler. The unit's revenues for financial year 2018-19 more than doubled to Rs 834.5 crore over the previous fiscal.
Amazon Transportation Services reported 31 percent rise in revenues at Rs 2,079 crore, while its net loss was at Rs 27.5 crore in 2018-19.
Emails sent to Amazon India did not elicit a response.
Amazon and its rival, Walmart-owned Flipkart, have been pumping in millions of dollars across various operations like marketplace, infrastructure, and supply chain management as well as marketing and promotion.
Amazon Founder Jeff Bezos had in 2016 committed investment worth $5 billion in the Indian market.
For the India market, Amazon recently introduced three new Echo devices, which include the new Echo that features updated fabric design and premium sound, and costs Rs 9,999 - the same price of the previous generation Echo.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Teja Lele Desai)
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.