Wednesday, 2 December 2015

Flipkart suffers Rs 2,000-crore loss in discount war

  Flipkart posted a loss of about Rs 2,000 crore in the year ended March, amounting to a fifth of its rapidly rising sales, as the country's largest online retailer spent heavily to fund discounts to win customers and stay ahead of rivals Snapdeal and Amazon India while investing in back-end operations.

Flipkart Internet, which runs the consumer-facing portal, registered a net loss of Rs 1,096.4 crore, while that of Flipkart India, the wholesale arm, was Rs 836.5 crore, according to a Registrar of Companies filing on Monday. A year ago, the units had a combined loss of Rs 715 crore. Combined sales trebled to Rs 10,390 crore as reported last month. A Flipkart spokesperson declined to comment on the company's financials. Last month's numbers came from its annual MGT-07 return that lists sales and net worth. The latest data is from the complete standalone financial statement that Flipkart has filed.

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