Amazon India logistics arm's FY18 revenue jumps 59%, to get fresh fund infusion
Amazon Transportation Services Pvt. Ltd, the Indian logistics arm of e-tailer Amazon.com Inc., reported a 59% rise in operational revenue and a wider loss for the year through March 2018.
Operational revenue for 2017-18 grew to Rs 1,574.2 crore from Rs 991.9 crore the previous year, according to the company’s filings with the Ministry of Corporate Affairs.
Gross expenditure also climbed 59% to Rs 1,608.80 crore from Rs 1,010.20 crore. Consequently, its net loss widened to Rs 24.7 crore from Rs 16.60 crore.
The filings also showed that the board of the logistics company approved a rights issue for a sum of Rs 122 crore in August, indicating that it is set to receive fresh funds.
This infusion comes just ahead of Amazon's annual flagship event “Great Indian Festival”. This year, the event will be held from 10 October to 15 October.
Last year, too, Amazon had injected capital into the logistics unit. Amazon Transportation had received Rs 130 crore ($20 million) from its parent in November last year.
Amazon Transportation was incorporated in May 2012 and has been a subsidiary of Amazon Corporate Holdings Pvt. Ltd since April 2016. The company earns revenue from delivery services for Amazon Seller Services Pvt Ltd, its sole customer and associate company that operates the Indian e-commerce arm of the Seattle-based major.
Since its indirect foray into India in 2012 with Junglee, a price comparison portal, Amazon has raced past several local rivals and is competing mainly with Walmart-owned Flipkart.
Online retail is not the only segment where Amazon has been investing in India. It has also spread its footprint in segments such as fintech, bus aggregation and offline retail.