Flipkart India logs 9% revenue growth at Rs 55,823 crore; losses widen by 42%

Flipkart India, the business-to-business arm of Walmart-owned ecommerce major Flipkart, recorded 9% growth in its operating revenue at 55,823 crore in FY23 against Rs 50,992 crore in the year-ago period, according to the latest regulatory filings. The unit’s net loss expanded by 42% to Rs 4,845.7 crore during the period under review as against Rs 3,404.3 crore in FY22.

Flipkart India sells goods to online sellers, who sell through the company’s online marketplace entity, Flipkart Internet, which posted a 33% rise in operating revenue in FY22 to Rs 10,476 crore. Flipkart Internet, which runs the Flipkart marketplace, is yet to file its audited FY23 financials with the Registrar of Companies. The latest filings from Flipkart India were sourced through business intelligence platform Tofler.

While Flipkart Internet makes revenue through commissions and other services to merchants, Flipkart India’s revenue mainly comes from selling goods to these sellers, and also by selling goods through its business-to-business ecommerce marketplace to mom-and-pop stores across the country.

The company’s total expense increased to 60,858.5 crore in FY23 from Rs 5,458 crore in FY22. Expenses rose on account of employee benefits, financing costs, and purchase of stock, but the rate of increase in the expenditure was relatively lower in FY23 compared to FY22 against FY21.

Flipkart India purchased goods worth 59,816 crore in the last financial year compared to Rs 53,878 crore in FY22.

Flipkart India is among several entities owned by US retailer Walmart, including companies such as fashion etailer Myntra, travel portal Cleartrip and Walmart India (which runs the Best Price wholesale stores) among others. Flipkart Internet and Flipkart India are two key entities that are critical to the etailer’s operations in India.

Flipkart has just concluded the first leg of its festive season sale this year through its flagship Big Billion Days sale.

ET reported on October 16 that ecommerce shopping during the first week of flagship sales had been off to a good start but it remains to be seen if the trend will sustain another three-four weeks in the run-up to Diwali.