It comes as a huge sigh of relief as Indian e-commerce giant Flipkart India has more than halved its losses even while increasing its revenues and expenses for fiscal year ended March 2017. According to the company's regulatory filings with MCA, the company has reported a net loss of Rs 244 crore for FY17, down from 544.5 crores in the previous fiscal.
The company has therefore trimmed the losses by 55 percent in FY17 in comparison to the previous fiscal. However, the company's total expenses shot up by 15 percent from 13,722 crores during FY16 to 15,813 crores.
The Indian e-commerce space has turned interesting with Walmart making their entry in the online space recently, by buying 77 percent stake in Flipkart for $16 billion. Experts considered it to be a great strategy by Walmart to enter the Indian market, which Morgan Stanley estimates to be worth $200 billion in a decade's time, and also at the same time compete with Amazon, which continues to be at a dominant spot in the category. Many even questioned the company's decision to invest in a loss-making company, but now with Flipkart trimming their losses, it surely looks like Walmart did their market research well.