Amazon India Ecommerce Unit Loss Widens to Rs 5,849.2 Crore in FY20, Revenue Up 43%, Retail News, ET Retail

NEW DELHI: Amazon Seller Services, the Indian online market unit of electronic queue giant Amazon, saw its losses increase to 5,849.2 crore for fiscal year 2019-20 from the previous year, as expenses are increased by more than 25%, as per regulatory documents.

Amazon Seller Services posted a net loss of Rs 5,685.4 crore in FY19. Its revenue, however, grew 43% to Rs 10,847.6 crore in FY20 from Rs 7,593.5 crore in AF19.

“The company’s turnover grew 43% compared to last financial year. The company continues to invest in opening new distribution centers and technological advancement,” according to the Registrar of Companies document shared by the information company Tofler market.

The emails sent to the company did not elicit a response.

According to the filing, Amazon Seller Services saw its total expenses increase by more than 25% from Rs 13,463.1 crore in FY19 to Rs 16,877.1 crore in FY20.

Employee benefit spending increased to Rs 1,382.9 crore (from Rs 1,183.3 crore), while the financial cost increased to Rs 108.2 crore in FY20 (from Rs 15.5 crore in FY19).

The “other expenses” component was at Rs 13,296.3 crore in FY20 versus Rs 10,802.5 crore in fiscal year 19. Within this, the company spent Rs 2,640.3 crore in FY20 under ” promotional advertising expenses “against Rs 2,330.7 crore in FY19.

Amazon Seller Services said it continues to invest in launching new products and services for its customers and sellers.

“The company is confident in its future growth,” he said.

Amazon competes with Walmart-backed Flipkart and smaller players like Snapdeal and Paytm Mall. The US-based e-commerce giant is also locked in a legal battle with Future Group over the Rs 24,713 crore asset sale deal with Reliance.

The regulatory filing found that Amazon Seller Services received over Rs 8,400 crore in infusion of funds during FY20 in three tranches.

Amazon Corporate Holdings Private Limited and Limited issued Amazon Seller Services shares valued at Rs 2,800 crore in May and Rs 3,400 crore in October last year and Rs 2,208.01 crore in January of this year, as per document.

The two entities were issued shares worth around Rs 2,310 crore in June of this year and Rs 1,125 crore on September 17, 2020, he added.

“Your board of directors approved the issue of 92.5 crore shares of Rs 10 at its meeting held on September 30, 2020. Your board of directors will proceed with the allotment of the shares after receiving the remittance from shareholders. “, he added.