Flipkart‘s logistics arm, Ekart Logistics, has reported a significant increase in net losses to INR 1,718.4 crore in the financial year 2023-24, a five-fold jump from INR 324.6 crore in the previous year.
Ekart revenue from operations drops 5% to INR 12,115.3 Cr
According to INC42, the company’s degrowth in profitability was primarily due to rising expenses and a decline in revenues. Ekart’s revenue from operations dropped 5% to INR 12,115.3 crore in FY24, compared to INR 12,787.4 crore in the previous year.
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Meanwhile Ekart’s total expenses increased by over 6%, reaching INR 14,149.4 crore this year, up from INR 13,325 crore last year. This rise was mainly due to higher employee costs and other expenses.
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Notably, the logistics segment accounted for nearly 78% of Ekart’s gross operating revenue, generating INR 9,429.8 crore. Warehousing services contributed around 10% to the company’s operating revenue. Ekart Logistics operates over 7,000 trucks, 70 fulfilment centres, 80 sortation facilities, and 3,500 last-mile delivery hubs, covering 14,000 pin codes across India.
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In contrast, Flipkart India’s operating revenue surged 26% year-on-year to INR 70,541.9 crore in FY24. Flipkart’s marketplace arm, Flipkart Internet, also reported a 21% growth in revenue to INR 17,907.3 crore, narrowing its losses by 41% to INR 2,358 crore.