Amazon India B2B and B2C arms record collective loss of Rs 5,826 Cr in FY19

As e-commerce companies have concluded their annual festive season sale, financial pundits have started tracking their performance during the period.

Amidst several estimations and comparison over their income and sale in the festive season, poster boys of e-commerce space - Flipkart and Amazon - have revealed the financial data for the year ending on March 2019.

The two companies have been locked in an intense battle for over six years to prove their supremacy in India. As similar to past, the duo continues to bleed profusely.

Starting with Amazon India, the firm has posted financial data of B2B as well as B2C arm. Amazon Wholesale India, the local wholesale unit of Amazon has registered an 8% fall in revenue to Rs 11,250 crore in FY19.

During the same period, losses of the wholesale unit were recorded at Rs 141 crore. The firm has posted Rs 131 crore loss in the previous year.

While the losses for the wholesale unit is not surprising, the marketplace unit or Amazon Seller Services has recorded losses at Rs 5,685 crore. Importantly, the firm has been able to control losses from Rs 6,287 crore in the previous year.

The marketplace arm had witnessed a 15.6% hike in expenses to Rs 10,802 crore to earn revenue of Rs 7,778 crore. In the previous fiscal, the revenue was recorded at Rs 5,018 crore, a 55% increase from the previous fiscal.

The revenue breakup of B2C arm include earnings from advertising, which grew 2X to Rs 905 crore in FY19. On the other hand, expenditure includes spending on delivery, advertising, sales promotion and legal fees.

Separately, Amazon India digital payment arm, Amazon Pay has registered a 250% rise in losses to Rs 1,160 crore.

It's worth noting that the government had introduced new FDI rules for all marketplace entity operating in India in February, this year. However, the financial data comprises only two months, February and March, which could have minimal effect on their business.

Zooming in on Flipkart's annual return filing, the Walmart-controlled company wholesale arm Flipkart India Private Limited 43% rise in revenue to Rs 30,930 crore.

Where Amazon India B2B arm posted Rs 141 crore loss in FY19, Flipkart's wholesale arm has recorded 85% increase in the net loss to Rs 3,385 crore during the same fiscal.

Flipkart Internet, the B2C arm, saw a 57% rise in overall revenue to Rs 4,800 crore, while the net loss was recorded at Rs 1,624 crore in FY19.

Further, the financial data of Flipkart's other entities are expected to come soon. Then we'll be able to analyse the revenue and expense break up of all operating entities under its umbrella.