Flipkart India's Revenue Reaches Rs 50,000 cr, Losses Widen 40 pc to Rs 3,404 cr in FY22
Flipkart India's Revenue Reaches Rs 50,000 cr, Losses Widen 40 pc to Rs 3,404 cr in FY22

Flipkart India, the business-to-business arm of Walmart-owned Flipkart, saw its revenue jump 34.5 percent to Rs 50,992 crore in FY22, up from Rs 42,941 crore in FY21. Losses meanwhile widened by almost 40 percent to Rs 3,404 crore.

The company’s financial year runs from April 1, 2021, to March 31, 2022. All of its expenses, including inventory costs, employee salaries, finance costs, and depreciation shot up in FY22. Flipkart India sells goods to online sellers who sell them through the company’s online marketplace entity, Flipkart Internet. Flipkart Internet posted a 33 percent rise in operating revenue in fiscal 2022 to Rs 10,476 crore.

While Flipkart Internet makes revenue through commissions and other services, Flipkart India’s revenue mainly comes from selling goods to these sellers, and also by selling goods through its business-to-business e-commerce marketplace to mom-and-pop stores across the country. The company also earns revenue by collecting transaction and logistics fees from vendors who place orders through Flipkart’s B2B e-commerce marketplace.

Flipkart India purchased goods worth Rs 53,878 crore in FY22 compared to Rs 47,629 crore in FY21. Its employee benefit costs rose 62 percent to Rs 627 crore in FY22 from Rs 385 crore in FY21, leading to a 19 percent increase in overall costs to Rs 54,580 crore.

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’s increasing inventory and employee benefit costs could also be attributed to rising inflation during the first half of the calendar year affecting overall sales. In late October, Delhivery, the country’s largest e-commerce third-party logistics service provider, informed investors that it had a moderate outlook for the rest of the year, leading to its shares tumbling below their issue price.

Meanwhile, Flipkart-owned Myntra’s revenue from operations jumped 45 percent to Rs 3,501 crore, while its losses widened 40 percent to Rs 597 crore in FY22.

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