Flipkart Internet services private Limited is Internet giant which is registered in India and this time it has seen losses more than double to Rs 2,306 crore in the financial year ended 31st March 2016.
This year the company has claimed that their losses were up by 110% and this maybe because it has been spending lot of money to give tough competition to the US based Amazon.
According to regulatory filings with registrar of companies Flipkart’s sales were up at a much faster clip of 153% during the year to Rs 1.952 crore but later on the losses jump up in the year FYI14 and FYI15.
Flipkart Internet owns Flipkart.com and it earns from seller commissions and other services of advertisements.
The main source of spending is investment and both companies Amazon and Flipkart have companies registered in India, which runs their businesses across e-commerce, logistics, whole-sale and payments.
It seems that it has become a trend to spend money without any check because of huge funding and investments done by the companies which are registered outside and earlier snapdeal laid off so many employees and Flipkart is showing losses which also may lead to lay off of employees.
The e commerce companies in India are not able to make profit and keep on showing their GPV to the investors but when it comes to earning and making profit it looks like a big task for them which makes us also realize that virtual world is not true and people should go physically to the market to choose and buy the best products because major chunk of people still do not like shopping online and only few product lines are successful on the e commerce platform and it may take some more time for them to perform and earn profit for their investors.