Online marketplace Amazon India incurred losses of around Rs 3,572 crore in 2015-2016, more than double the previous financial year, as it spent aggressively to unseat homegrown rival Flipkart as the top retailer in the country. With this, the combined losses of the largest three e-commerce firms in India including Flipkart and Snapdeal comes to a whopping Rs 5,052 crore.
Amazon India’s losses for the fiscal year ended March 2016 soared to Rs 3,572 crore from Rs 1,724 crore in the previous year, according to regulatory documents sourced from data platform Tofler. The company’s revenues jumped to Rs 2,275 crore this year compared with Rs 1,022 crore last year.
The company attributed the loss to heavy spending on infrastructure and technology and the massive discounts that the site offers.
“The company has invested in establishing infrastructure, opening new fulfilment centers and technology advancement due to which (the) company’s losses increased to Rs 3,572 crore,” Amazon said in the documents. “The company is also investing on launching new products and new services for its customer and its sellers. The company is confident on its future growth.”
Amazon recently announced it would invest an additional $5 billion in its India operations, with its India Vice President Amit Agarwal saying that the e-commerce giant will now focus more on increasing the market share and improving its infrastructure.