Flipkart, Amazon, Snapdeal Losses Could Have Paid For Printing Notes After Demonetisation

Funded by foreign investors and parent companies, India’s leading e-commerce firms — Flipkart, Amazon and Snapdeal — have increased its losses by 51% in just one year to Rs 11,754 crore, to fund growth and dole out discounts to gain marketshare.

“This has deeply hurt the sentiment of investors who were expecting big bang returns in near term. This change can only be expected to intensify in the coming January to March quarter,” said Sanchit Vir Gogia, Chief Analyst and CEO of Greyhound Research.

“Leadership changes, increased competition and multiple rounds of devaluation further added to woes of Indian startups. While the move to add increasing onus on tangible outcomes like revenue, cash flow among others is likely to bring a cheer in investor sentiment, it can well stand to hurt consumer sentiment who may not have access to the previously offered deep discounts which in turn prompted them to use services from startups,” said Gogia.

[Hindustan Times]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s