Flipkart Internet Private Limited, the marketplace arm of the Walmart-owned e-commerce giant, reported its revenues for the financial year 2021-22 as Rs 10,659 crore, a 31 per cent jump since the last financial year. The company further reported a net loss of Rs 4,362 crore during the same fiscal, according to regulatory documents sourced from the business intelligence platform Tofler. This is a 51 per cent increase from the last financial year. The firm spent more on delivering orders as well as on advertisements and promotions.
The company’s total expenses for the fiscal were reported as Rs 15,020 crore. This is a 36 per cent jump compared with FY21. This was mainly due to expenses related to delivery, advertisements and promotions and employee benefit.
Flipkart Internet spent Rs 5,045 crore on services related to logistics, which was 46 per cent higher compared with last year. Advertising promotional expenses almost doubled to Rs 1,945 crore from Rs 1,073 crore. Repairs and maintenance expenses increased 50 per cent to Rs 1,939 crore from Rs 1,286 crore compared to the last year.
Flipkart Internet generates revenue from various sources. These include income from services such as marketplace, collection, logistics, storage and advertisement.
Revenue from marketplace services was Rs 2,823 crore compared to Rs 2,794 crore last year. Revenue from advertisements increased 50 per cent to Rs 2,083 crore compared to last year. Revenue from logistics services grew 57 per cent to Rs 3,848 crore.
Also, Myntra Designs Private Limited, the Walmart-owned fashion retailer, reported its revenues for the financial year 2021-22 as Rs 3,610 crore, a 46 per cent jump since the last financial year. The company further reported a net loss of Rs 597 cr during the same fiscal, according to Tofler. This is a 40 per cent increase from the last financial year. The company’s total expenses for the fiscal were reported as Rs 4,206 crore.
Flipkart recently said it achieved a significant milestone of over 1 billion customer visits on its platform during the e-commerce firm’s 8-day-long festive sale event The Big Billion Days (TBBD). Last year’s event witnessed over 700 million such customer visits, according to the sources.
It is competing with players such as Amazon, Reliance’s JioMart, Tata Group and SoftBank-funded Meesho, which were also running parallel sale events. They are eyeing a share of the $45-50 billion e-commerce market, which is expected to grow to $350 billion by 2030. More than 60 per cent of customers during TBBD came from Tier-2 and -3 cities demonstrating a strong adoption of e-commerce across the country.
Flipkart spent $1.1 billion from February 1 to July 31, according to parent company Walmart’s filings with the US Securities and Exchange Commission (SEC). The cash spent by Flipkart includes its spending on mergers and acquisitions, capital expenditure, and working capital requirements for the e-commerce platform as well as fashion arm Myntra and payments platform PhonePe. This also includes Flipkart’s investment in its supply chain as well as data centers.
In a recent interview, Flipkart Chief Executive Officer Kalyan Krishnamurthy said the company would be more cautious in investing in acquisitions and businesses in an uncertain macroeconomic environment. He said the firm will focus more on growing the bets it made in the past 12-18 months, including health, travel, and externalising its supply chains.
In September, Flipkart’s rival Amazon Seller Services, the Indian marketplace arm of the American e-commerce giant, reported Rs 21,633 crore as revenue for the financial year 2021-22 (FY22), a 32 per cent jump since the last financial year. The company reported a net loss of Rs 3,649 crore in (FY22), according to Tofler. This is a 23 per cent decrease from the last financial year. The company’s total expenses for the fiscal stood at Rs 25,283 crore.
Another subsidiary, Amazon Wholesale (India) Private Limited, reported its revenues for the financial year 2021-22 as Rs 4,605 crore, up 47 per cent since the last financial year. The company further reported a net loss of Rs 480 crore during the same fiscal. The company’s total expenses for the fiscal were reported as Rs 5,086 crore.
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