49 e-commerce cos including Amazon India, Flipkart report over Rs 16,000 crore in losses; BookMyShow, Jabong, Olx India book profit
About 49 e-commerce companies in india have recorded over Rs 16,000 crore losses for the year to March 2015 on account of slowing economic growth, demonetisation, others.
1. E-commerce companies like Flipkart, Amazon India, Snapdeal and Shopclues have reported total losses of Rs 9,576 crore till December 31, 2015
2. BookMyShow, Jabong and Olx India have reported profit for the year to March 2015
3. Money raised by internet companies dropped to a three-year low in the December 2016 quarter
About 49 e-commerce companies in India have recorded over Rs 16,000 crore in losses for the year to March 2015 on the back of slowing economic growth, decline in demand due to demonetisation and sharp reduction in discounts, The Financial Express reported on Tuesday.
According to the news report, leading e-commerce companies like Flipkart, Amazon India, Snapdeal and Shopclues have reported to total losses of Rs 9,576 crore till December 31, 2015.
However, only a few companies like BookMyShow, Jabong and Olx India have reported profit for the year to March 2015, it said.
The e-commerce companies across sectors like fashion/accessories, fintech, food/grocery, auto and travel have reported losses till December 31, 2015
The report further said that money raised by internet companies dropped to a three-year low in the December 2016 quarter, with less than $300 million (nearly Rs 1,995.83 crore) coming in.
In 2016, funds were hard to come and the $2.7 billion (nearly Rs 17,962.43 crore) that was invested was 50% lower than the amount invested in 2015, it said.
For a perspective on how cautious investors have become, they had infused $2.6 billion (nearly Rs 17,297.2 crore) in a single quarter in the three months to September 2015, the report said.
The report citing brokerage firm Jefferies, e-retailers will focus on profitability this year; as it believes consolidation in the sector would continue.
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