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Flipkart India in the red by Rs 280 crore

India’s most popular and durable online buying portal, Flipkart  India, has reported a loss of Rs 280 crore plus ending March this year. It’s much bigger than its loss of Rs 100 crore plus last year. Revenues actually soared five times to over Rs 1180 crore from a mere Rs 204 crore in the previous year, but expenses jumped equally five’fold to Rs 1336 crore from Rs 265 crore last year. Its cash balance dropped to Rs 166 crore or so on 31 March from Rs 236 crore a year ago. Deeper losses coupled with soaring sales are Flipkart’s new strategy of a winner takes all approach that aims at revenue growth at any cost to garner market share. It’s actually following the US portal’s model. To finance its expenses it has raised 550 million USD in the last five years which includes 360 million USD this year alone.

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