India-based e-commerce retailer Flipkart Group’s has announced financial results for the full year 2018.
The retailer’s income jumped 50 percent to Rs. 30,164 crore in 2018. However, losses also increased fivefold, to reach Rs. 5,964 crore.
Flipkart’s retail business losses, including finance costs, increased by almost 10 times to Rs. 40,937 crore in the 2018 financial year up from Rs. 4,309 crore in 2017.
Markedly, finance costs are not identical as losses, but it reduces the overall worth of the company.
Flipkart has also used up finances greatly on employees, advertising, and logistics to prepare for the festive sale season.
Download Perfect Sourcing News App for Latest Business of Fashion News.
In the 2018 financial year, Flipkart also received funding from Japan’s SoftBank and China’s Tencent among other businesses. Also, the United States’ biggest offline retailer Walmart Inc. purchased maximum share in Flipkart at US $ 16 billion.
As per a recent report by Deloitte India and Retail Association of India, Indian e-commerce market is expected to reach US $ 84 billion in 2021 from US $ 24 billion in 2017. This will further allow players like Flipkart, to improve their profit margins.