Top sellers on leading e-commerce platforms report Rs 72,000 crore revenue, report profit margins at 0.5%

Both Amazon, Flipkart and sellers are currently face multiple regulatory proceedings currently.

The Bengaluru-based Salarpuria Sattva Group, primarily known for its presence in real estate, has emerged as a significant participant in India’s e-commerce ecosystem through two large seller entities, Darshita Aashiyana and Dawntech Electronics. In FY24, the two companies reported a combined revenue of over Rs 23,800 crore, each posting net profits of Rs 72 crore, resulting in margins of less than one percent. Another prominent seller, Cocoblu Retail, backed by RattanIndia Enterprises, reported Rs 5,500 crore in revenue and a profit of Rs 63 crore.

These sellers are part of a broader group of ten entities on leading online marketplaces, such as Amazon and Flipkart, that together recorded approximately Rs 72,000 crore in revenue in FY24, according to filings reviewed by Moneycontrol.

The combined net profit for these firms stood at around Rs 230 crore. The financial performance of these companies, characterised by high topline and narrow profit margins, has attracted attention from regulatory authorities.

CCI and ED Probe

The Competition Commission of India (CCI) and the Enforcement Directorate (ED) are examining various aspects of these entities' operations. The CCI initiated inquiries in 2022, focusing on whether certain sellers may have received preferential treatment on online platforms, potentially affecting competition.

The ED’s investigations, launched in 2024, are looking into the structure and ownership of these entities and whether they follow India’s FDI rules and relevant provisions under the Prevention of Money Laundering Act (PMLA).

Under current Indian policy, e-commerce platforms that receive foreign direct investment are not permitted to operate inventory-based models or maintain direct or indirect control over sellers. The regulations are designed to ensure platform neutrality and safeguard competition. Authorities are seeking to understand the commercial structure and functional independence of the sellers operating at scale on these platforms.

As per the available data, Hyderabad-based Premium Lifestyle and Fashion India reported Rs 11,885 crore in revenue and Rs 25 crore in profit for FY24, as per regulatory filings sourced via Tofler, a market intelligence platform. The company has stated that it operates 150 retail stores, although this could not be independently confirmed. One of its directors lists prior retail experience at a U.S.-based university store.

Sports Lifestyle Private Limited, based in Delhi, posted Rs 9,153 crore in revenue but a Rs 2 crore loss during the same period. Its reported employee costs stood at Rs 3.2 crore.

Some sellers are understood to use fulfilment and warehousing infrastructure provided by the platforms themselves. During depositions before the CCI in 2023, a few executives were asked about pricing models, vendor agreements, and inventory logistics. In certain instances, representatives indicated that brand partnerships and commercial arrangements were coordinated with support from the platform.

Multiple sellers reportedly secured favourable supply terms from consumer brands, particularly in categories like smartphones and televisions. Regulatory authorities are reviewing whether such arrangements were available to other sellers and how terms were determined.

Karnataka High Court Case

In response to regulatory actions, several of the companies have pursued legal remedies. Multiple petitions were filed across different High Courts, prompting the CCI to approach the Supreme Court in 2025 with a request to consolidate the matters. The Court directed that ongoing cases be transferred to the Karnataka High Court for further proceedings.

As part of its inquiry, the ED is also examining links between individuals associated with certain seller entities and former executives from one of the platforms. Authorities have indicated that the primary objective of the probe is to assess adherence to statutory norms and commercial transparency.

The outcome of the investigations is expected to contribute to the broader policy conversation around e-commerce in India, especially in light of ongoing efforts to promote platform neutrality and open-access digital infrastructure through initiatives like the Open Network for Digital Commerce (ONDC).

Emails sent to Flipkart, Sattva Group, RattanIndia and other sellers remained unanswered. In response to Moneycontrol's queries, a spokesperson of Amazon said "Amazon.in is a third-party marketplace with over 16 lakh sellers and we treat sellers in a fair, transparent, and non‑discriminatory manner."