Jasper Infotech the owner of Snapdeal, has reported a loss of Rs 1,328.01 crore for the year which ended in 31 March 2015. The company in the previous year reported a loss of Rs 264.6 crore.

Also, Snapdeal’s loss has grown five-fold in last one year. Snapdeal had reported actual sales of Rs 168.1 crore for the year ended March 2014.

The underlying reason for this is the growing competitive market which has been leading to the aggressive discounts and offers.

Flipkart had reported a loss of about Rs.2,000 crore for the year ended 31 March and a loss of Rs.715 crore in the previous year.

[source]

2 comments

  • Not sure how long the Indian eCommerce companies keep burning their won cash to get going.

    Gaining the market share is important but if that causes you to loose too much of your own money then struggle for survival starts at some point…

  • Its strange that PE investors are flocking to invest into these ecomm companies only looking at their GMV and not their bottomline. How long they will sustain like this? Its a question of time when either of them will put their handsup and the market reaction could be severe.

Subscribe to Newsletter