Amazon India: Amazon India units post moderate growth, cut losses in FY24

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Amazon India’s logistics and payments arms reported 7-9% growth in operating revenue and moderately lower losses for the fiscal year ended March 2024, while its wholesale business, which sells goods and services in bulk to sellers and distributors, declined marginally.

While Amazon’s India marketplace unit is yet to file its audited financials with the Registrar of Companies (RoC), earnings of the three arms indicate a slowdown in Amazon’s India business amid increasing competition from rivals like Flipkart and Meesho.

Amazon Transportation Services (ATS), the company’s shipping arm in India, clocked a 7.6% increase in operating revenue to Rs 4,889 crore in FY24 from Rs 4,543 crore in FY23. Its net loss narrowed marginally by 6.9% to Rs 80 crore from Rs 86 crore during the period, filings sourced from business intelligence firm Tofler showed.

Amazon Wholesale reported Rs 3,577 crore of operating revenue on a standalone basis in FY24, down from Rs 3,600 crore in FY23. The unit, which has been scaling back operations due to tightened foreign direct investment (FDI) regulations for ecommerce companies owned by foreign firms, reduced its net loss by 44% on year to Rs 342 crore in FY24.

Amazon Pay reported the highest revenue growth among the three, generating Rs 2,286 crore in FY24, up 9.2% from Rs 2,093 crore in the previous year, while reducing its loss by 39% to Rs 911 crore.


To bolster its competitive efforts against Paytm, PhonePe and Google Pay, Amazon invested Rs 850 crore in Amazon Pay in FY23 and an additional Rs 600 crore in May FY25.

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As of September, Amazon Pay processed 70.9 million Unified Payments Interface (UPI) transactions, ranking as India’s seventh-largest UPI player by transaction volume, trailing behind PhonePe, Google Pay, Paytm, Cred, Navi and Axis Bank apps.For Amazon Transportation, its revenue includes earnings from logistics related to its shipping operations, indicating growth in its ecommerce goods transportation.

ET had reported earlier that ATS decided to open up its logistics infrastructure to deliver non-Amazon orders as well, positioning itself as a direct rival to new-age logistics companies such as Xpressbees, Delhivery and Ecom Express.

In FY24, ATS did not receive any additional investment from its parent company. It received a total capital infusion of Rs 775 crore from its parent in two tranches – Rs 400 crore in January 2023 and Rs 375 crore in June 2022.

Amazon Seller Services, which runs the US ecommerce giant’s local marketplace, is yet to file its FY24 results. In FY23, it had reported a muted 3.4% increase in operating revenue at Rs 22,198 crore, significantly slower than the 32% growth seen in FY22. The unit’s losses had also swelled by 33% to Rs 4,854 crore in FY23. In FY21, Amazon marketplace had seen a growth of 49% in revenue.

The local arm of the US etailer recently appointed company veteran Samir Kumar as the country manager for India, replacing Manish Tiwary who had stepped down in August. ET reported on August 28 that Amazon has set a target for entering the quick commerce sector by the first quarter of 2025, following discussions to partner with Swiggy, which operates the Instamart quick-commerce service.

During an interview with ET in August 2023, Amit Agarwal, Amazon’s senior vice president of emerging markets, said the company has begun supporting its India investments with revenue generated from the local market.



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