Snapdeal’s FY2014-15 financial report revealed a loss of Rs. 1,328.01 crores. Amazon India’s FY15 losses grew fivefold to Rs. 1,723.6 crore. But on top is Flipkart with INR 2000 crore loss.
Latest to join the list is Paytm that recorded a loss of Rs. 372 crore in FY15.
In FY2014, Paytm had made a profit of over Rs. 5 crore. But after it transformed into an ecommerce portal from an online recharge & payments company, the company has reported a loss of Rs. 372 crore according to its filings with the Registrar of Companies.
While on the one hand ecommerce biggies Flipkart, Amazon, Snapdeal are accumulating huge Rs. 1000 crore+ losses, on the other Gurgaon based online marketplace Shopclues’ FY15 loss is Rs. 100 crore, the least of all.
“We have toppled Flipkart, Snapdeal and Amazon India. Also, we are the top player in the Tier-II and Tier-III cities, as 70 per cent of the business comes from there… Our capital raise to value generation ratio is the best,” said Shopclues’ CEO Sanjay Sethi.
The founder believes that as the company has highest number of sellers, maximum stock keeping units (SKUs), and no pointless fundraising sessions & mindless spends, it has led to this growth. Sethi also called Shopclues ‘the first Indian pure play e-commerce company to turn profitable.’
In spite of these heavy loss figures, the ecommerce industry is growing from strength-to-strength and will continue to do so. What needs to change or will eventually change is online marketplaces’ cash burning activities.
Ecommerce players are already focusing on revenue generating sectors such as advertising and marketing services. They are also trying to get rid of discount driven model by introducing online only products/brands and improving their respective mobile platform to enhance buyers’ shopping experience. Let’s hope that FY2015-16 brings good news for Indian online marketplaces.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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