Amazon India incurred losses of Rs 3,572 crore in 2015-2016 financial year, say reports
Mint said that Amazon.com Inc.has increased its authorised share capital of its Indian unit by more than four times in 12 months
Online retail giant Amazon had a loss of around Rs 3,572 crore in its last financial year of 2015-2016, which accounts for more than double the previous year's. The company officials explained the loss mentioning heavy spending on infrastructure and technology and the massive discounts.
However, the revenue of the company has also doubled in the last financial year. Mint reported that the Seattle-based announced a revenue of Rs 2,275 crore, almost double from Rs 1,022 crore the previous year.
Flipkart gave a revenue of Rs 1,952 crore for the same period while it incurred losses of Rs 2,306 crore.
For grabbing the Indian market, Amazon has been spending aggressively on its promotions. Mint said that Amazon.com Inc.has increased its authorised share capital of its Indian unit by more than four times in 12 months.
Amazon India's authorised share capital is at Rs 16000 crore and the paid-up share capital is Rs 9629 crore.
While authorised share capital of a company is the maximum amount of share capital that the firm is authorised by its constitutional documents to allocate to shareholders, paid-up capital is the amount of money a company has received from shareholders in exchange of shares.