Global e-commerce giant Amazon has made fresh infusions into its India units during the festive season, the latest regulatory filings show.
Amazon Seller Services, the e-commerce business in India, received capital of Rs 3,400 crore from Amazon Corporate Holdings Pvt Ltd and Amazon.com Incs Ltd, filings sourced from paper.vc show. The same entities have also infused Rs 900 crore in payments arm Amazon Pay and Rs 172 crore in food and grocery arm Amazon Retail India.
Before this infusion, Amazon Seller Services had so far received a total capital of Rs 30,088 crore.
The fundings come during the festive season when Amazon is looking to add new customers and offer discounts as part of its sale events.
Amazon's India e-commerce business reported its revenues for financial year 2018-19 at Rs 7,778 crore, a 55 percent jump since the last financial year, filings from Tofler showed. The company further reported a net loss of Rs 5,685 crore during the same fiscal. This is 9.5 percent decrease from the last financial year.
Comparatively, Amazon Seller Services had seen losses rise 30 percent in FY18.
Amazon's advertising and promotional expenses increased in FY19 to Rs 2,330 crore from Rs 2,109 crore the previous fiscal, while legal charges also shot up to Rs 1,448 crore from Rs 1,145 crore.
"The company continues to invest in establishing infrastructure, opening new fulfillment centres, and technology advancement due to which the company accumulated loss increased by Rs 56,854 MM," Amazon said in the filings. "The company also continues to invest on launching new products and services for its customers and sellers. The company is confident on its future growth."
Impact of e-FDI norms
However, Amazon Wholesale India Private Limited, the wholesale B2B arm of the company, seems to have been hit by e-FDI norms that kicked in in February this year. The new FDI rules prevent any seller from sourcing over 25 percent inventory from the e-commerce company or its affiliates.
The wholesale unit reported its revenues for financial year 2018-19 as Rs 11250 crore, an 8 percent fall since the last financial year. The company further reported a net loss of Rs 141 crore during the same fiscal. This is 7 percent increase from the last financial year.
In FY18, Amazon Wholesale had seen revenues jump 73 percent to Rs 12,224 crore.
Amazon Pay saw revenues rise considerably to Rs 834 crore, a 111 percent jump, but lossess also shot up by 247 percent to Rs 1160 crore, filings from paper.vc show.
Amazon Retail India, the food and grocery business, saw revenues in FY19, its first accounting year, touch Rs 139 crore while losses were at Rs 127 crore.
Amazon said the food retail business was able to reach customers in 125 cities and the company has leased one lakh square feet of storage space for the purpose. Amazon Retail India is also setting up a sorting, grading and packing centre for fruits and vegetables.
Flipkart's e-commerce business, Flipkart Internet Private Limited, saw its revenues for financial year 2018-19 at Rs 4,800 crore, a 57 percent jump since the last financial year, as per filings from Tofler. The company further reported a net loss of Rs 1,624 crore during the same fiscal. This is 40 percent increase from the last financial year.
Flipkart India Pvt ltd, the B2B wholesale arm of Flipkart, saw net total income during the financial year ended March 31, 2019, at Rs 30,931 crore as against Rs 21,657 crore in the previous financial year witnessing an increase of 42.82 percent, filings from paper.vc showed.The company incurred a net loss of Rs 38,368 million during the financial year under review as against the net loss of Rs 2063 crore in the previous financial year. There has been an increase of 85.91 percent in the net loss.