In a financial year marked by significant achievements, Flipkart Internet Private Limited, the business-to-consumer (B2C) arm of Walmart-owned Flipkart, has reported robust financials, nearing the INR 15,000 Cr mark in operating revenue for the year ended March 31, 2023. The e-commerce platform’s operating revenue soared by 42%, showcasing the company’s substantial growth in the highly competitive market.
Impressive Revenue Figures
Flipkart Internet’s operating revenue reached INR 14,845.8 Cr in FY23, witnessing a substantial increase from INR 10,477.4 Cr in the previous fiscal year (FY22). The company’s primary revenue streams include commission charges and various services provided to merchants, including product advertising. The overall revenue, including other income, stood at INR 15,044 Cr, marking a 41% rise from INR 10,640.5 Cr in FY22.
Strategic Reduction in Net Loss
Despite the dynamic and competitive e-commerce landscape, Flipkart Internet managed to curtail its net loss, demonstrating prudent financial management. The net loss for FY23 decreased by 9% to INR 4,026.5 Cr, showcasing a significant improvement from INR 4,419.5 Cr in FY22.
Expenditure Breakdown
Flipkart’s B2C arm recorded a total expenditure of INR 19,043 Cr in FY23, marking a 27% increase from INR 15,024.3 Cr in FY22. The breakdown of major expenditure areas reveals the company’s strategic allocation of resources.
- Employee Benefit Expenses: The company allocated INR 4,482.2 Cr towards employee salaries, PF contributions, gratuity, and other welfare benefits. This represented a 20% increase from INR 3,735.7 Cr in FY22. Employee benefit expenses also included ESOP expenses of INR 2,155 Cr, reflecting a 29% rise from INR 1,668.6 Cr in FY22.
- Transportation Cost: Flipkart’s B2C arm spent INR 6,571.2 Cr on transportation expenses in FY23, demonstrating a 30% increase from INR 5,045.6 Cr in the previous fiscal year. This includes costs associated with moving products efficiently.
- Advertising Expenses: To further strengthen its market presence and attract more users, Flipkart invested INR 2,407 Cr in advertising during FY23. This marked a 24% increase from INR 1,945.9 Cr in FY22.
Flipkart’s Wholesale Arm Performance
While Flipkart’s B2C arm showcased remarkable growth, its business-to-business (B2B) or wholesale arm, Flipkart India Private Ltd, reported a 9% rise in operating revenue to INR 55,823.9 Cr in FY23. However, the net loss for the wholesale arm increased to INR 4,845.7 Cr, representing a 1.4X rise from INR 3,404.3 Cr in FY22.
Strategic Funding Amidst the Challenges
In the midst of the ongoing funding challenges in the industry, Flipkart secured a substantial $600 Mn from its parent company, Walmart. The company is poised to raise an additional $400 Mn in the upcoming funding round, positioning itself to compete fiercely against its rival, Amazon India.
Solid Funding History
To date, Flipkart has successfully raised over $14 Bn in funding rounds, boasting support from prominent investors such as Tencent, Softbank, Tiger Global, Microsoft, and others. With over 70% of the company’s funding secured, Flipkart continues to demonstrate resilience and strategic prowess in the highly dynamic e-commerce sector.
