Amazon India‘s marketplace business has demonstrated continued growth, surpassing its competitor Flipkart in terms of revenue, with collections from the platform and its associated services crossing the Rs 25,000 crore threshold. The company reported an adjusted EBITDA of Rs 588.6 crore for the fiscal year 2024, reflecting a solid financial performance. However, Flipkart’s top-line growth outpaced Amazon Seller Services during the same period.
In FY24, Amazon India’s operational revenue rose by 14.5%, reaching Rs 25,406 crore compared to Rs 22,198 crore in FY23, according to its filings with the Registrar of Companies. Of this revenue, 82.4% came from marketplace services, while the remaining revenue was derived from platform-related services, including marketing and royalties.
The company also reported a non-operating income of Rs 186.8 crore, bringing the total revenue for the year to Rs 25,592.8 crore.
Amazon Seller Services, which provides marketplace and marketing support, is ultimately controlled by Amazon.com, Inc., the global e-commerce giant. On the expenditure side, delivery charges were the largest cost item, accounting for 25.8% of total expenses. These charges increased by 9.1% to Rs 7,487.9 crore in FY24 from Rs 6,863.1 crore in FY23.
Other major expense categories included sales promotion and legal and professional costs, each accounting for roughly 12% of total expenses. These amounted to Rs 3,586.1 crore and Rs 3,530.2 crore, respectively, in FY24. Additionally, Amazon Seller Services spent Rs 2,771.2 crore on employee benefits, which included share-based payments (ESOP cost) of Rs 682.7 crore.
The company’s total expenses rose by 6.5%, reaching Rs 29,062.3 crore in FY24, up from Rs 27,283.6 crore in FY23.
Despite the increase in costs, Amazon India managed to reduce its losses by 28.5%, reporting a loss of Rs 3,469.5 crore in FY24 compared to Rs 4,854.1 crore in FY23. The company also turned a positive operating cash flow of Rs 724.1 crore in FY24, a significant improvement from the negative cash flow of Rs -1,542.1 crore in FY23.
Excluding non-cash ESOP expenses, Amazon India posted an adjusted EBITDA of Rs 588.6 crore for FY24, marking a turnaround from an EBITDA loss of Rs 94.1 crore. The EBITDA margin showed improvement, strengthening to -0.37%. On a unit basis, Amazon India spent Rs 1.14 to generate every rupee of operating revenue.
Meanwhile, Amazon’s main rival, Flipkart, reported Rs 17,907 crore in revenue for the year, growing by 21% year-over-year. The company also saw its losses reduce by over 40%, down to Rs 2,358 crore in FY24.