US-based e-tailing giant Amazon saw its losses more than double to Rs 3,572 crore in the financial year ended March 2016, as it started increasing its spending at an alarming pace to go past market leader Flipkart and invest in its infrastructure.
The increase in losses from Rs 1,723 crore in the previous financial year indicates that Amazon Seller Services, which earns revenues from commissions and other services to sellers, lost $44 million or about Rs 300 crore per month during the last financial year.
Amazon Seller Services also saw its revenues jump 123% to Rs 2,275 crore for the year as well, even as total losses for the unit since it was set up mushroomed to Rs 5,637 crore at the end of FY16.
The aggressive spending of Amazon has started showing some results. Compared to Amazon, Flipkart Internet's sales increased 153% to Rs 1,952 crore during the same period. Both units earn revenues through commissions, advertisements and shipping fees that they charge sellers.
But these numbers don't include revenues of Flikart's fashion subsidiary Myntra.