Flipkart Internet Private Limited, the B2C division of Walmart-owned Flipkart, saw its operating revenue nearing the INR 15,000 Cr mark in the fiscal year ending on March 31, 2023. The operating revenue of the marketplace division surged by 42%, reaching INR 14,845.8 Cr in the financial year 2022-23 (FY23), compared to INR 10,477.4 Cr in FY22.
Flipkart Internet generates its main revenue through commission charges and additional services provided to merchants, such as product advertising. When factoring in other sources of income, the B2C division experienced a 41% increase in total revenue, reaching INR 15,044 Cr in the reviewed year, up from INR 10,640.5 Cr in FY22.
The company also successfully decreased its cash burn, leading to a 9% reduction in its net loss to INR 4,026.5 Cr in the reviewed year from INR 4,419.5 Cr in FY22.
In FY23, the total expenditure of the online marketplace division amounted to INR 19,043 Cr, marking a 27% rise from INR 15,024.3 Cr in FY22.
The company allocated INR 4,482.2 Cr for employee salaries, PF contributions, gratuity, and other welfare benefits. This figure marked a 20% increase from INR 3,735.7 Cr in FY22. Employee benefit expenses also encompassed ESOP expenses of INR 2,155 Cr in FY23, reflecting a 29% surge from INR 1,668.6 Cr in FY22.
The B2C division spent INR 6,571.2 Cr on transportation expenses in FY23, indicating a 30% increase from the previous fiscal year’s INR 5,045.6 Cr. These costs cover the expenditures related to moving products from one point to another.
In a bid to draw in additional users to its B2C marketplace, Flipkart allocated INR 2,407 Cr for advertising, marking a 24% uptick from INR 1,945.9 Cr in FY22.
It is noteworthy that Flipkart’s B2B or wholesale division, Flipkart India Private Ltd, recorded a 9% increase in operating revenue, reaching INR 55,823.9 Cr in FY23, up from INR 50,992.5 Cr in FY22. However, its net loss escalated to INR 4,845.7 Cr, representing a 1.4X rise from INR 3,404.3 Cr in FY22.
The fresh development comes at a time when, amidst the ongoing funding winter, Flipkart has secured a whopping $600 Mn from its parent Walmart. The startup is likely to raise another $400 Mn in this funding to take on its rival Amazon India.
Up until now, Flipkart has garnered more than $14 Bn in funding, with support from investors including Tencent, Softbank, Tiger Global, Microsoft, and several others. Nevertheless, a majority of the company’s stake, exceeding 70%, is currently held by the US retail giant Walmart.