According to wikipedia, flipkart was funded by founders with Rs 4 lakh and broke even in 2008, I don't understand how it is loss making. It is certainly not worth $1 billion now, but so was facebook when it was funded by MS. I don't think any body would be so stupid in making decisions as described by the author.
there is a huge difference between breaking even to an initial investment and making losses on a day to day basis. Sure they may have recovered their initial investment - but if the difference between their expenses and their income is negative - they are loss making. It's basic economics.
As for comparing flipkart to facebook... I dont really know where to start on that comparison!
