New Fact - Flipkart bears Rs 2,000-crore loss in FY15 to dish out discounts

The e-commerce giant, Flipkart has reported a loss of Rs 2,000 crore in the financial year ended on March, as compared to Rs 715 crore in the previous year, said an ET report.

Citing the Registrar of Companies filing, the report mentioned that Flipkart's two entities, Flipkart Internet which handles the consumer-facing portal and Flipkart India, the wholesale arm reported a net loss of Rs 1,096.4 crore and Rs 836.5 crore, respectively.

As per the report, the company has incurred losses while competing with other e-retailers like Snapdeal, Amazon. In the rat race to win customers by providing heavy discounts, Flipkart has spent huge amounts to fund discounts, marketing, technology and building new warehouses.

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The combined sales of both the entities trebled to Rs 10,390 crore and the registered combined loss of Rs 715 crore a year ago, the report added.
When contacted, the company opted not to comment on the financials.
The company head, Mukesh Bansal had earlier indicated that the company is expecting six-fold jump in sales in this financial year.
According to an ET report, in September, Bansal had said that the company is on course to sell goods worth Rs 65,000 crore in FY16.
During the company's Big Billion sale, Flipkart sold 25 items per second with the viewership of six million people on the site.
According to a report by Bank of America Merril Lynch (BofA­ML), India's e-commerce market is expected to witness a significant uptrend in the coming years and touch $200 billion (Rs 13.23 lakh crore) in terms of gross merchandise value (GMV).
Flipkart, which competes with Snapdeal and Amazon besides other smaller players, opened its largest warehouse in Telangana in October.
Flipkart, currently 33,000 ­people strong, has 45 million registered users clocking 10 million daily visits and its technology has enabled it to deliver eight million shipments per month.


Original Source - http://www.dnaindia.com/money/report-flipkart-bears-rs-2000-crore-loss-in-fy15-to-dish-out-discounts-2151533

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