Flipkart India Pvt. Ltd and Flipkart Internet Pvt.Ltd, two entities controlled by India’s e-commerce major Flipkart, havr reported a loss of Rs 2000 crore in the year ended march, as per some of the media reports, citing regulatory filings.
The amount is a sharp increase from previous year’s loss which was Rs 715 crore. Sales at the two companies trembeled to Rs 10,390 crore last fiscal year, the reports state.
Flipkart, which has raised USD2.6 billion over the past 18 months, has been burning huge cash on giving discounts, marketing, acquisition, boosting technology and building warehouses, in order to stay ahead of its rivals; Snapdeal and Amazon.
In October this year, after failure of its 2014 Big Billion Sale, the company launched the second edition of Big Billion Sale, a three day event, where it offered deep discounts and offers up to 90%, 80% and flat 70% across all the categories.
Flipkart India is the wholesale cash-and-carry entity, while Flipkart Internet is the marketplace arm which takes commissions on each sale.
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