Here is some food for thought.
Will Amazon ever be profitable? - Telegraph
Amazon is world's largest retailing company and they make very little profit. Even though they have been operational for 20 years now, the focus is not profit but capturing the market. There is no way any online retailer in India is making a paisa in profits. Except for specialized stores which do not compete with these biggies in the market. Why do you think Flipkart has to keep on raising money every six months or so? The USD 1 billion investment is unlikely to last them for more than a year or two. Indian e commerce market is very small right now. The focus is not on making money but to expand presence, capture market and outlast competition. And that is why Bezos is investing USD 2 billion more in India. Because they know if they give up right now, Flipkart would become a huge threat to them in the future.
BTW. Amazon has no reasons to hide their profits. They are a public company so they need to show as much profit as possible to keep investors happy. Flipkart of course has no such need. But the investors in the company most likely has access to all their financials. Flipkart attracts investments because it is one of the very few players that are likely to outlast the competition.
Will Amazon ever be profitable? - Telegraph
Amazon is world's largest retailing company and they make very little profit. Even though they have been operational for 20 years now, the focus is not profit but capturing the market. There is no way any online retailer in India is making a paisa in profits. Except for specialized stores which do not compete with these biggies in the market. Why do you think Flipkart has to keep on raising money every six months or so? The USD 1 billion investment is unlikely to last them for more than a year or two. Indian e commerce market is very small right now. The focus is not on making money but to expand presence, capture market and outlast competition. And that is why Bezos is investing USD 2 billion more in India. Because they know if they give up right now, Flipkart would become a huge threat to them in the future.
BTW. Amazon has no reasons to hide their profits. They are a public company so they need to show as much profit as possible to keep investors happy. Flipkart of course has no such need. But the investors in the company most likely has access to all their financials. Flipkart attracts investments because it is one of the very few players that are likely to outlast the competition.
