Amazon India's estd P&L: $21.3Bn in GMV, $5.6Bn in revenue (15% B2C take rate), $0.9Bn annual losses
- Overall, Indian eComm is now $120Bn in size - Continues to be Amazon's fastest growing foreign market going into the closing of this year. - FY23 was an impact of Covid baked in growth. - Amazon would be quite okay with losing just $900Mn annually for the opportunity this presents
DaringTrain
Stealth
3 months ago
If Amazon is 25 billion out of 120 total. Where is the other 95? I would assume Amazon and Flipkart would be 3/4th of ecommerce, no?
Amazon is 25, Flipkart another 25
Meesho 5. Myntra and Nykaa following it.
Not exacts but those are the rough numbers I know
DaringTrain
Stealth
3 months ago
So its more like 70-75? (Even if you add quick commerce ones, its still additional 5). So, 120 seems a little exaggerated, no?
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OldReform
Stealth
3 months ago
Don't they deliberately show losses to avoid taxes?
Next21
Stealth
3 months ago
Stupidity at its best. Don't listen to people who say this.
When you "show loss" you also need to fund it. The "loss" is an exponentially higher number than the tax to be paid.
No one in their right mind would say, "Oh let me lose $1bn so I don't have to pay $250mn in taxes" UNLESS they have black income.
OldReform
Stealth
3 months ago
That's the difference right? - I said "Showing losses" and not actual loss. They have multiple different revenue stream especially from cloud business that can fund these losses.
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Toph56
Stealth
3 months ago
What’s the source of this data?
This isn’t reported by Amazon
This is estimates from Barclays
Should not be too off though
Yea 0.9b is chump change to Amazon. The opportunity to capture a big chunk of Indian e-commerce is huge. They can outlast the competition for years to come and then start making the profits
BengaluruLandLord
Stealth
3 months ago
The competition is Walmart
You’d be surprised with America’s debt. For rich or such big businesses, debt is an instrument afaik
Sidbhrdwj
Stealth
3 months ago
Exactly
Second that. While FK AOV is low it's quite ahead in terms of orders and hence GMV of FK definitely to be higher than that of AMAZON. I was estimating it to be close to 35 Bn$. And another way arrive at this number is through their recent funding by Google at 33Bn$ valuation. Typically for valuations at such level are 1 times GMV.
120 bil is the size of the market in 2023/24 or is projected to reach that number in the future?
I think Flipkart is quite ahead of Amazon in terms of orders and GMV. And as per sources Amazon has been in a burn control mode for the past year and was okay to let go of market share. So if they are at a loss of 0.9 Bn$ after all this then I wonder where FK is at. Maybe 1.5-2Bn $ loss!
