In a bid to emerge as the ecommerce market leader in India, Amazon has been pumping in more money in its marketplace as compared to rival Flipkart. However, both of them slashed investments in their respective marketplaces in FY2016-17. As per a recent report, Amazon Invested $308 Mn (INR2,010 Cr) in Amazon Seller Services in FY2016-17 while Flipkart pumped in just $414K (INR 27 Lakh) in its marketplace.
As per their latest regulatory filings made in India and Singapore, total investment into Amazon Seller Services so far stands at $2.29 Bn (INR 14,940 Cr) as compared to Flipkart’s $1.28 Bn (INR 8,349 Cr) through Flipkart Marketplace.
The report states that Flipkart Ltd, the Singapore-based parent of India’s online retail giant, slashed investments into Flipkart Marketplace to $414K (INR 27 lakh) in 2016-17 from about INR $250 Mn (1,629 Cr) in the year before that as it focused on conserving cash amidst a funding slowdown.
Similarly, Amazon’s $308 Mn investment in its marketplace this year was significantly less than the $1.14 Bn (INR 7,643 Cr) it pumped in the year before.
The same trend followed this year as well. Since April, Amazon Seller Services has received around $510 Mn (INR 3,321Cr) in fresh funding. In July 2017, Amazon poured in about $260 Mn (INR 1,680 Cr) in Amazon Seller Services, followed by a $250 Mn (INR 1,620 Cr) infusion this month.
Meanwhile Flipkart’s main commerce unit has received a capital infusion of less than $307K (INR 2Cr) (this does not include Flipkart’s infusions in its fashion unit Myntra) till date.