Flipkart loses Rs 2,306 Cr in its battle with Amazon
Home-grown eCommerce giant Flipkart has lost more than double to Rs 2,306 crore in the financial year ended March 31, 2016. The loss was up by 110 percent as the Bangalore-based company is still ramping up its spending to battle on-grounds with US-based online retail giant Amazon.
The Indian eCommerce market is estimated to be at $5-billion. According to the Registrar of Companies (RoC), the company’s sales went up to 153% during the year bringing in Rs 1,952 Cr.
Meanwhile, the proposed goods and services tax (GST) is also likely to take a toll on the eCommerce market. Players like Amazon and Flipkart has to collect tax at source and register in each state under the regime.
For service providers, according to the latest draft, the liability to pay GST will be shifted from the actual service provider to the electronic commerce operator.