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Flipkart's loss doubled & revenues grew 5x in 2012-2013

Discussion in 'Entrepreneurship | Startups | Business' started by Kaustubh Katdare, Dec 20, 2013.

  1. Kaustubh Katdare


    Engineering Discipline:
    Flipkart is surely an interesting company. According a report in LiveMint, Flipkart's revenues in the last financial year (that ended on March 31, 2013) grew 5x to about Rs. 1366 crores. The company however continues to make losses - the losses almost doubled as compared to previous year and in 2012-2013 the company reported a total loss of about Rs. 281.7 crore.

    I wonder if Flipkart's is on its way to 'doom'. The company seems to be finding it very difficult to keep up with its own growth. The company definitely is trying to make sure that they have a more sustainable business model - and changed from being an online retailer to a marketplace where resale partners could list their own offerings.

    Do you think Flipkart's downfall has started OR it's just too early to comment on anything? More specifically - do you think Flipkart will emerge as an independent entity (like Amazon) and not get acquired by some big fish (Amazon, maybe).
  2. Pensu

    Pensu Star

    Engineering Discipline:
    Computer Science
    I agree with one thing, they sure are an interesting company! Their loss is increasing, people are leaving the company(a little birdy told me!), but there is no lack of investment. I initially thought they would be stabilized by now, but looking at 281.7 crore of loss, it doesn't seem to be happening in near future. Anyways, Amzon has of-course hurt their market, but I guess it shouldn't concern them much. They have a lot of investment, and I think with time they are going to find a balance. Predicting anything else would be too early!
  3. SarathKumar Chandrasekaran

    Engineering Discipline:
    Its hard to beleive that flipkart is experiencing huge loss like this and I still think Flipkart can get up from the fall.
  4. Satya Swaroop Dash

    Engineering Discipline:
    Computer Science
    Flipkart is definitely too big to fail but it can work on cutting down its losses. For example, its own courier network, a huge chuck of its expenses goes towards that. Plus, Amazon is still continuing to provide free shipping on ‘Fulfilled by Amazon’ products and Flipkart is charging money for shipping items less than 500. They can decrease it to 300. Also their website, it used to be simple and easy to browse but now they have copied Amazon’s principle of showing suggested buying on the home page. Yes the new categories like clothing are good but there are established stores like Myntra who have an upper hand. Flipkart’s competition is increasing in leaps and bounds it has to think of something radical to get back on the top.
  5. Anil Jain

    Anil Jain Star

    Engineering Discipline:
    Without doing any strategic changes flip cart is surely movig towards a doom. If they are lucky enough company like Amazon may try their luck in acquiring them (As they are already expanding their wings in India). If Amazon has something of that sort in their belly it's good for Flipcart or they are all set to sun-set.

  6. Vikram S Bargah

    Engineering Discipline:
    Flipkart has shown immense growth the past & is continue to do so. Its true that the loss has been doubled. but do check its revenue, It has grown 5x. that shows the company's performance.
    Its too early to come up with any decision .
    I Do accept that with the entry of Amazon the market has affected but FK is still the most demanding online store in India.
  7. Kaustubh Katdare


    Engineering Discipline:
    I recently made purchases on Jabong and Flipkart. Jabong delivered stuff within less than 30 hours while Flipkart took about 4 days.
  8. Anand Tamariya

    Engineering Discipline:
    If losses are caused by depreciating assets, they are on high growth track. If not, they are doomed. That's all one can infer without looking at P&L statement.
  9. Kaushal Kishore

    Engineering Discipline:
    Kaustubh, I agree with others, its too early to decide that esp. if we consider their latest funding.
    + You should not compare strategy/rise or doom of any company based on the shipment of 1 order, there can be "n" number of reasons behind that. :)
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