Flipkart Marketplace Arm Revenues Jump 33 Pc to Rs 10,476 Cr
Flipkart Marketplace Arm Revenues Jump 33 Pc to Rs 10,476 Cr

E-commerce company Flipkart’s marketplace arm, Flipkart Internet, posted a 33 percent rise in operating revenue in fiscal 2022, but its loss for the year widened one-and-a-half times as it spent more on delivering orders as well advertisements and promotions.

The Indian unit of Walmart posted a net loss of Rs 4,361 crore on operating revenue of Rs 10,476 crore in the year ended March 31, 2022, regulatory filings sourced from business intelligence platform Tofler showed. Flipkart Internet generates revenue from multiple sources, including platform fees collected from sellers, and services such as shipping and carrying advertisements.

Revenue from marketplace services remained largely flat at Rs 2,823 crore while that from advertisements increased 50 percent to Rs 2,083 crore. The Indian company is the top contributor to parent Walmart’s ad revenue globally. Revenue from logistics services grew 57 percent to Rs 3,848 crore.

The company recorded total expenses of Rs 15,020 crore in the last fiscal year, a 36 percent jump compared with FY21, largely due to delivery expenses, advertisements, and promotions, as well as employee benefit expenses.

Flipkart Internet spent Rs 5,045 crore in delivering orders, which was 46 percent higher compared with the year before. Advertisement and promotional expenses almost doubled to Rs 1,945 crore from Rs 1,073 crore.

Amazon Seller Services, which runs the Amazon India marketplace reported a 32 percent jump in overall revenue to Rs 21,633 crore, on a standalone basis in FY22. The local unit of Seattle-based Amazon had also cut losses by almost 23 percent to Rs 3,649 crore in FY22.

Flipkart Internet’s increased expenses come at a time when e-commerce companies have seen inflation eating into their growth, which ET reported on July 25. Flipkart Group, Chief Executive Kalyan Krishnamurthy said e-commerce sales picked up in August, after a sluggish start to 2022.

Flipkart made multiple acquisitions over the past two years, having bought travel portal Cleartrip, e-pharmacy startup Sasta Sundar, and ANS Ecommerce, a full-stack e-commerce enabler, besides making investments in startups such as Ninjacart and Shadowfax.

While online platforms have seen a jump during festive season sales this year, Delhivery, the largest third-party e-commerce logistics company, forecast moderate growth expectations, citing inflation, raising concerns about the impact on the e-commerce sector.

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