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Amazon Retail India Private Limited has posted a net loss of ₹794 crore in FY22, an increase of 22 per cent from the previous financial year. Amazon Wholesale (India), the American e-commerce giant’s B2B arm, reported a net loss of ₹480 crore in FY22, against a net profit of ₹43 crore in FY21.
It reported revenue of ₹1,720 crore, up 8 per cent from the previous financial year. The company’s total expenses for the fiscal topped ₹2,514 crore in FY21 up from ₹2,245 crore in FY20. Its EBITDA loss widened to ₹750 crore in FY22 from ₹626.7 crore in FY21.
Amazon Wholesale (India) Private Limited, its B2B arm reported its revenues for FY22 as ₹4,605 crore, a 47 per cent jump since the last financial year. The company’s total expenses for the fiscal were reported as ₹5,086 crore. Its EBITDA loss stood at ₹478.2 crore, compared to an EBIDTA profit of ₹51.10 crore. Its revenues from operations grew by 46.6 percent to ₹4592 crore from ₹3131.9 crore compared to last year. According to financial data accessed by business intelligence platform, Tofler.
Amazon Seller Services, Amazon Pay India, Amazon Internet Services, Amazon Data Services, and Amazon Transportation Services have all reported losses for the fiscal. Though, the companies have managed to trim their losses.
Bernstein report
According to a recent report by Bernstein, the American e-commerce giant, which has been in India for more than eight years, is yet to be profitable. So far, it has made an investment of whopping $6.5 billion, it said. According to its report, in the e-commerce segment, the GMV Flipkart’s sales are the highest at $23 billion followed by Amazon with $18 billion to $23 billion. However, new entrents, like Reliance Retail, are catching up soon at $15.5 billion with 30 per cent of its sales coming from digital platforms.
According to the report, India, as a market, is quite underpenetrated. It sees India’s retail market is growing at 8 per cent CAGR and expected to reach $1.3 Tn market by 2025. The retail mix is dominated by the unorganized sector (~75 per cent) by 2025.
However, the mix is changing with organized retail gaining share (~15 per cent) and e-commerce accelerating (~10 per cent) by 2025. E-commerce is the fastest growth segment at ~30 per cent CAGR to reach $133 Bn by 2025. Indian retailers are expanding through following strategies.
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