Flipkart India narrows loss to Rs 3,150.6 Cr for FY20
Flipkart India, the B2B arm of Walmart-owned Flipkart, has narrowed its losses to Rs 3,150.6 crore during 2019-20 as compared to the previous financial year, according to regulatory documents.
The unit had posted a loss of Rs 3,836.8 crore for the financial year ended March 31, 2019, documents filed with the Corporate Affairs Ministry showed.
"During the financial year ended on March 31, 2020, the net total income of company was Rs 34,610.1 crore as against the net total income of Rs 30,934.9 crore in the previous financial year, witnessing an increase of 11.88 percent in the net total income," documents sourced by business intelligence platform, Tofler, revealed.
There has been a decrease in the net loss by 17.88 percent, the document said.
Flipkart India is engaged in business of wholesale distribution of mobile, television, laptop, tablet, mobile accessory, footwear, clothing, etc, on B2B (business-to-business) basis.
Emails sent to Flipkart seeking comments did not elicit a response.
Flipkart, which is locked in a battle against rival Amazon, has its holding company registered in Singapore.
Both the major ecommerce players have just come off the recent festive sale season which started from mid-October and continued till November. A report from consulting firm RedSeer said that the festive season sale registered 65 percent growth in 2020 as compared to the last year, adds YourStory.
The report stated that the total ecommerce sales during this period with overwhelming share of Flipkart and Amazon touched $8.3 billion as compared to $5 billion in 2019. RedSeer had earlier projected that the festive season would bring in $7 billion in gross sales for the ecommerce segment despite the COVID-19 pandemic.
The report added that this year's festive season saw 88 percent customer growth from last year, which was driven by about 40 million shoppers from Tier II cities and beyond. Further, mobiles continued to dominate across all the products, and with further increasing share of users from Tier II cities and beyond, the gross merchandise value (GMV) per customer dropped to Rs 6,600 from Rs 7,450 from the last festive season.