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Flipkart Sales Trebles, Losses Soar to INR 20b (~$300m)

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Flipkart, country’s largest online retailer registered a net loss of INR 20 billion as of year ending March-2015, as the company spent heavily to fund discounts to acquire customers from competitors. The company head Mukesh Bansal expects its sales to increase 6x this year. Flipkart is also looking to double its seller count by March from 60,000 now in an effort to convert itself into a pure marketplace similar to rival Snapdeal.

“Flipkart could post between 35-50% of its sales as operating loss due to its high logistics cost and discounting,” said Ruchi Sally, director at retail consultancy Elargir Solutions. “The only way to reduce (this) is to diversify in higher-margin product categories such as apparel and home.” Read more

 

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