Flipkart Internet’s aggressive bid against rivals costs heavily, bleeds Rs 2,306 crore losses

The locally registered marketplace unit of the online retailer Flipkart-Flipkart Internet Private Limited-has witnessed losses of more than double to Rs 2,306 crore in the financial year ended March 31, 2016.

The losses increased by about 110%, as the company kept on ramping up the speed to fend off US-based online retailer-Amazon's $5-billion war chest for India.

According to regulatory filings with Registrar of Companies (RoC), sales were up at a much faster clip of 153% during the year to Rs 1,952 crore.

The pace of increase in both revenues and losses has come down as compared to the three-times jump in losses and four-times increase in revenues between FY14 and FY15.

In FY15, Flipkart India and Flipkart Internet reported a combined a loss of Rs 2,000 cr ore. Combined sales trebled to Rs 10,390 crore in FY15, with Flipkart India accounting for over 90% of the sales. The numbers for financial year ending March 2016 for Flipkart India are yet to be filed.

Flipkart Internet owns Flipkart.com and registers sales from seller commissions and other services like advertisements.
(image: IndiaTimes)