An analysis of financials of 14 Indian Internet e-commerce Retailers threw up some interesting trends - aggregate yoy revenue growth of these companies of 85% in 2016 was similar to the growth reported in 2015. Aggregate net loss margin in 2016 at 131% was significantly higher than 101% in 2015, indicating increased absolute losses. Combined net loss for these companies stood at Rs 106.7 bn in 2016 versus RS 44.8 bn in 2015, with Amazon India, Flipkart Internet (Flipkart?s marketplace arm) and One97 Communication (Paytm?s parent) accounting for ~70% of the losses. We note that our analysis does not include financials of some of the other large e-commerce companies such as Snapdeal whose financials aren?t available yet.
Flipkart Internet?s revenue break-up reveals that the company's logistics service segment registered the highest yoy revenue growth of ~325%. On the other hand, other operating revenue comprising primarily advertising revenue earned by the website grew only 5%. Other revenue segments comprise marketplace service, collection service and storage service revenues.
