Amazon is burning much more money than flipkart right now. They have invested more than flipkart's total funding and still doing quarter of Flipkart business. Flipkart on the other side is trying to reduce its loss and trying to do breakeven in few categories.
And amazon took 15-18 years to make that cash cow. Flipkart will also figure out something in next few years. For all the negativity for flipkart, they have much much bigger share in apparel which is the place where margins are higher and profitability is easier.
And amazon can not keep spending money on India. They have to convince their shareholders that investing in India will be profitable. So if flipkart being market leader will not be able to convince someone for more money, it will put pressure on amazon also for the same.
Still they sold items of more than $100 million and thats what we are discussing. Some items were cheaper on other sites in festive season but that doesn't make it a flop. Also they didn't inflate MRP just removed discount on few items slowly and added it back on sale day.Though they did give great discounts on most of the categories and items .I don't understand what is wrong with that. They wanted people to buy items online and they were successful in doing that.