Indian e-commerce major Flipkart Internet managed to narrow its losses for the fiscal year 2017-18 to Rs 1,161 crore (approx $158.3 million) from Rs 1,640 crore it had reported in the previous fiscal.
Flipkart’s revenue from operations for the financial year ended March 2018 also soared 48 percent to Rs 2,790 for 2017-18 as against Rs 1,882 in the previous financial year, according to the documents filed with the Corporate Affairs Ministry.
Despite the losses, Flipkart continues to splash the cash to maintain its dominant position in the Indian e-commerce market and has been competing aggressively with Amazon India for the top spot.
During the current fiscal, Walmart had acquired about 77 percent of Flipkart for roughly $16 billion, the biggest deal in India’s e-commerce sector.
With the backing of Walmart, Flipkart is expected to further strengthen its foothold in the Indian e-commerce market.
Flipkart Internet, responsible for Flipkart’s online marketplace, had gained one of its highest value capital infusions in September this year, as its Singapore-based parent company has invested Rs 3,460 crore ($520 million) in the business ahead of the sale season.
The investment proved to be beneficial for Flipkart, as it managed a 51 percent share leaving Amazon far behind with just 32 percent share during the recently concluded festive sale. Flipkart accounted for more than half of GMV for the entire industry, according to a report by RedSeer.
Flipkart is aiming to treble its gross merchandise value (GMV) to $17.6 billion (Rs 117,088 crore) by 2020-2021 and further reduce its losses during the current fiscal.