Amazon India’s B2B arm that provides sellers with supplies, has reported a revenue of Rs 12,224 crore in FY18.
As compared to the revenue of Rs 7069.8 crore in FY17, this is a 73 per cent increase in the figure. The company’s Wholesale segment had become profitable in last fiscal with pocketing Rs 2.8 crore as gains. However, information about its profitability in FY18 is not available.
Unlike previous fiscal where the growth was fueled by policy changes in the country regarding the limit upto which sellers on an e-commerce platforms could sell, this year, the jump in revenue has to be attributed the growth in operation and other factors that are controlled by the company.
In the meanwhile, the largest seller on Amazon India, Cloudtail has been growing at a stagnant rate (24 per cent in FY17, 27 per cent in FY18) since the extraordinary revenue jump of 300 per cent in FY16. One of the reason for this stagnation is believed to be the Wholesale arm’s setting up of another selling entities including Appario.
Flipkart’s Wholesale arm, the largest competitor of Amazon India Wholesale, saw the revenue soaring up by 40 per cent to Rs 21,600 crore, and losses growing 8.5X times to Rs 2062.6 crore in FY18.
To fight against Walmart-controlled company, Amazon has been pouring in enormous funds in the Indian wholesale entity. So far it has infused Rs 756 crore in the firm, Rs 341 crore being the latest fund infusion taking place in May this year.
However, yet this pales in comparison to Flipkart’s Rs 4,472 crore fund investment in the wholesale arm in March alone this year.
Jeff Bezos led Amazon is hell bent on profiting on the e-commerce market potential in India, and while the revenues have risen by a fair amount in the wholesale segment, overall the company has still long way to go before achieving its goals.
This development was first reported by ET.