Flipkart, Amazon narrow FY25 losses, revenue momentum sparks IPO buzz

Amid the festive sales buzz, India’s e-commerce majors Amazon India and Flipkart Internet Pvt Ltd have both reported a sharp reduction in losses for FY25, buoyed by higher revenues and improved operational efficiency, setting the stage for their long-anticipated public market debuts.

Amazon Seller Services’ losses shrank nearly 90% to Rs 374 crore in FY25, compared with Rs 3,469 crore in the previous fiscal, according to statutory filings. The improvement was supported by an 18.6% rise in operating revenue and stronger operating leverage.

Flipkart Internet, meanwhile, reported a net loss of Rs 15,686 crore in FY25, down 31.7% from Rs 22,962 crore a year ago. Its net total income rose 14.1% year-on-year to Rs 2,07,461 crore, against Rs 1,81,877 crore in FY24. The narrowing of losses was also aided by contributions from its group companies including Myntra, Cleartrip, Ekart, Minutes, and Super.money. Of these, only Myntra remains profitable, which also saw a jump from Rs 50 crore in FY24 to Rs 548 crore in FY25.

Industry observers point to a mix of policy and market factors boosting the sector.

While Amazon’s sharper reduction in losses has drawn attention, market watchers are keenly eyeing Flipkart’s trajectory ahead of its much-anticipated IPO.

“There are certain product categories where Flipkart is a strong competitor. From a market position standpoint, the company is performing well. The focus on profitability is a key priority, and we understand it's not far off,” says Aakash Agrawal, Head – Digital and New Age Business, Anand Rathi IB. He also adds that, given Flipkart is the largest e-commerce company in India, the primary risk would be overvaluation at IPO, but with Walmart as a majority owner, Flipkart benefits from deep expertise in operating as a public company.

On concerns around competition in the quick commerce segment, where Zepto, Blinkit, JioMart, BigBasket, and even Amazon have intensified their push, experts say Flipkart does not need to dominate this space. “Flipkart’s strength is in core e-commerce, which remains the largest and fastest-growing segment. Their disciplined approach—not pivoting the entire model to chase quick commerce—is encouraging,” they note.

As for delivery speeds, Flipkart continues to prioritise Tier 2 and Tier 3 penetration over Amazon’s metro-focused one-day promise. In this year’s Big Billion Day sales, it reached 21,000 pincodes but is still catching up on one-day delivery, where its peer Amazon dominates.

Amazon’s delivery model is a premium service. Flipkart has wisely avoided replicating that nationwide, which would distort its cost structure.

Looking ahead, profitability remains the central question. While Amazon India’s sharp narrowing of losses has set a benchmark, analysts believe Flipkart is less than a year away from breaking even. “At their scale, even small monetisation tweaks generate massive upside. Profitability is inevitable,” Agrawal said, adding that ancillary businesses such as Cleartrip and fintech ventures should be seen as ecosystem enhancers rather than standalone bets.

This year’s festive sales have seen positive consumer traction, aided by GST rate cuts across categories, which experts say will help improve demand sentiment for online platforms.

With both giants tightening the gap on the bottom line, India’s e-commerce battle is entering a new phase—one where the race to profitability may be as defining as the race for scale.