With raising race between the online stores, Flipkart has fallen into a massive trouble. To compete with rivals like Snapdeal and Amazon India, Flipkart suffered a huge losses.
Two main entities controlled by Flipkart, which is India’s largest e-commerce firm, reported a loss of about Rs. 2,000 crore in the year ended March, up from a loss of Rs.175 crore in the previous year.
Sales at Flipkart Internet Pvt. Ltd and Flipkart India Pvt. Ltd trebled to Rs.10,390 crore last fiscal year, the report said.
“Flipkart could post between 35-50% of its sales as operating loss due to its high logistics cost and discounting. The only way to reduce (this) is to diversify in higher-margin product categories such as apparel and home,” Ruchi Sally, director at retail consultancy Elargir Solutions, said.
Flipkart will now have to work aggressively so that it might sell goods worth three-fold at least. Flipkart has plans to sell goods worth Rs 65,000 crore in 2016 and also increase its seller count.
