Any reduction in losses could mean the return of investor confidence, something Flipkart needs badly
Breaking News : Flipkart India Pvt Ltd, the largest unit of India's biggest e-commerce marketplace, was able to increase revenues by 43 per cent and cut losses by over 34 per cent in the financial year 2015-16 as investors began to mount pressure to see tangible results.
The Flipkart unit posted a revenue of Rs 13,177 crore for the 12 months that ended March 2016, compared to the Rs 9,226 crore in revenue it posted in the year ago period. Losses shrunk to Rs 544.6 crore, from Rs 826.7 crore in the corresponding periods, according to regulatory documents filed by the company.
While losses for its cash-and-carry business were down, it was offset by the higher losses posted by Flipkart's marketplace arm, bringing the total loss of the company to Rs 2,850 crore. The combined revenue for the two units stood at Rs 15,129 crore for the financial year.
Flipkart has set up a complex holding structure, with several entities listed in Singapore, making it hard to ascertain the exact revenue and loss figures.
Despite hefty growth in revenues in the previous financial year, investors continued to punish Flipkart's valuation. After a series of markdowns by mutual fund investors, Morgan Stanley set a valuation of just $5.58 billion for the three months that ended September. Flipkart had enjoyed a peak valuation of $15.2 billion, making it among the top valued start-ups in the world.Read more.
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