Ecommerce rivals Flipkart and Amazon have both clocked robust growth in fiscal 2021 amid the second wave of the pandemic.
The COVID-19 pandemic has seen an increasing number of consumers shopping online at a higher frequency than last year, accelerating growth in e-commerce platforms, Business Standard quoted analysts as saying.
Two units of Walmart-owned Flipkart’s India business – wholesale unit Flipkart India and marketplace arm Flipkart Internet—have reported a revenue growth of 25 percent and 32 percent in FY21, respectively, Economic Times reported quoting regulatory filings sourced from business intelligence platform Tofler.
While Flipkart Internet’s operational revenue stood at Rs 7,840 crore, the company’s losses increased 49 percent to Rs 2,881 crore.
On the other hand, Flipkart India’s revenue from operations grew 25 percent to Rs 42,941 crore, while its losses fell 22 percent to Rs 2,445 crore.
Registered in Singapore, the ecommerce major operates in India through a number of units.
Flipkart Internet earns revenues from fees such as marketplace, shipping, payment gateway and other services. Revenues from the company’s core business of selling goods and services, IT-enabled services, marketplace and related support services are included in Flipkart Internet’s operational revenue.
Meanwhile, rival company Amazon Seller Services Pvt Ltd, which runs the Amazon India marketplace, saw a 49 percent rise in revenue from operations at Rs 16,379 crore in FY21 against Rs 10,847.6 crore a year ago. Net loss dipped 19 percent to Rs 4,748 crore, while total expenses stood at Rs 21,127 crore, Business Standard reported also quoting Tofler.
Amazon Wholesale (India) Pvt Ltd, a key unit of the US company’s local operations in the country, reported a 7 percent fall in FY21 revenue at Rs 3,143 crore, while net profit was up 132 percent at Rs 43 crore.
Revenue from operations of Amazon Wholesale (India) includes revenues coming from the company’s core business of selling goods and services.
The marketplace arm, which is the main competitor of Flipkart, contributed Rs 7,555 crore of revenue in FY21 compared with Rs 4,949 crore a year earlier. Amazon Wholesale (India)’s revenue from other marketplace services such as advertising services stood at Rs 2,554 crore compared to Rs 1,636 crore a year ago.
Amazon Wholesale (India) is scaling down operations on the back of new rules on foreign direct investment for ecommerce companies owned by foreign firms.
