Wednesday, 28 December 2016

Amazon, Flipkart, Paytm make up 70% of total e-commerce losses

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E-commerce companies hit largely by the demonetisation move towards fag end of the year took heavy losses on their balance sheet. Losses of about 14 online companies shot up 138 percent to Rs 10,670 crore. Amazon India, Flipkart, and Paytm, between them, contributed 70 percent of the total losses during the year. Amazon which pumped in a fresh bout of USD 5 billion investment into its India retailer to take on home-grown boys spent Rs 2,163 crore on ads. 

Paytm ad bills worked out to Rs 1,115 crore, whereas Flipkart notched up a tab of Rs 923 crore. On top of the demonetisation, purchases driven by discounts and sales have bored a dent in the balance sheets of these companies even as investors turn wary on e-tailers.

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