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Tuesday, December 24, 2013

Flipkart India reports loss of Rs.281.7 crore

Flipkart India Pvt. Ltd, the wholesale business of India’s largest online retailer Flipkart, reported a loss of Rs.281.7 crore in the year ended March, much wider than its loss of Rs.109.9 crore in the previous year, as it significantly raised spending to increase revenues.
Revenue soared fivefold to more than Rs.1,180 crore from Rs.204.8 crore in the previous year, documents filed by the company with the Registrar of Companies show.
Flipkart India’s expenses jumped more than five times to Rs.1,366 crore from Rs.265.6 crore last year. Cash balance dropped to Rs.166.2 crore on 31 March from Rs.236 crore a year ago.
The deeper losses as well as soaring sales are in keeping with Flipkart’s winner-takes-all strategy, which involves pursuing revenue growth and market share at any cost, the same model followed by Inc. in the US.

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