Amazon India Culls Cash Burn Across Domains In FY25

Ecommerce major Amazon’s India unit managed to control its losses in the financial year 2024-25 (FY25). The company managed to cut losses across its business units despite muted growth across its revenue streams. 

Amazon India’s business is divided into five separate entities — marketplace unit Amazon Seller Services; logistics subsidiary Amazon Transport Services; B2B wholesale marketplace Amazon Wholesale India Services; retail trade arm Amazon Retail India, and fintech arm Amazon Pay. 

Here’s a look at the top and bottom line performances of all the subsidiaries.

Amazon Transportation Services: Net loss reduced 57% YoY to INR 33.9 Cr, while operating revenue grew 8% to INR 5,284 Cr. 

Amazon Wholesale: The B2B arm managed to reduce its net loss by 35% YoY to INR 220.7 Cr despite seeing a 16% decline in its operating revenue to INR 2,993.9 Cr from INR 3,576.7 Cr. 

Amazon Retail: Losses declined 32% YoY to INR 394.2 Cr, while top line grew 18% to INR 2050.8 Cr. 

Amazon Pay: The digital payments subsidiary curtailed its loss by 5% YoY to INR 865.7 Cr. Despite cutting losses, Amazon Pay’s operating revenue dipped 7% YoY to INR 2,195.1 Cr. 

Amazon Seller Services: The marketplace arm cut its net loss by 89% YoY to INR 374.3 Cr. Its operating revenue increased 19% to INR 30,138.6 Cr from INR 25,406 Cr in the prior fiscal year.

With this, the company’s losses across all business verticals for the fiscal year stood at INR 1,888.8 Cr. In comparison, Amazon India’s subsidiaries’ total losses in FY24 stood at approximately INR 3,811 Cr, which includes INR 3,469 Cr loss from Amazon Seller Services, INR 342 Cr loss from Amazon Wholesale, INR 911 Cr loss from Amazon Pay, and INR 80 Cr loss from Amazon Transportation Services.

While Amazon has managed to improve the financial health of its India business, its journey in the country has been quite eventful in recent times. 

A salient takeaway from the ecommerce giant’s India tryst in recent times has to be its experimentation with expanding into the growing quick commerce arena in the country. 

After piloting its quick commerce offering ‘Now’ in Bengaluru earlier this year, the company has since been able to expand the offering across other metropolitan cities, Mumbai and Delhi.

While the company has established itself as a key player in the ecommerce arena, it has yet to make a sizable impact in the quick commerce space. 

The company is undertaking a major expansion of its quick commerce network, “Amazon Now”, with plans to operate over 300 dark stores across India by December 2025. It has earmarked INR 2,000 Cr to build new micro-fulfilment centres, sortation hubs, and last-mile delivery stations.

Besides, the company also announced plans to invest INR 2,000 Cr in June to ramp up its logistics and operations network. This capital will be deployed in expanding and upgrading its operations infrastructure, while also improving associate safety and well-being programmes.

The company also infused INR 350 Cr into its fintech arm to scale up its presence in the country’s UPI market in April. Despite this, Amazon Pay dropped to the 10th position in the UPI app market as of September from the 8th position earlier this year.