Flipkart India, the B2B arm of Walmart-owned Indian e-commerce giant Flipkart, witnessed a substantial upsurge in its standalone net loss during the financial year 2022-23 (FY23). The net loss ballooned by over 42% to INR 4,845.7 Cr, compared to INR 3,404.3 Cr in the previous fiscal year, primarily due to stagnant income and escalating expenses.
The B2B division of the company, responsible for supplying products to online sellers who then list them on Flipkart’s online marketplace, Flipkart Internet, experienced a modest 9.7% growth in operating revenue, reaching INR 55,923.9 Cr.
During FY22, Flipkart India recorded an operating revenue of INR 50,992.5 Cr, marking a year-on-year (YoY) growth of 18.7%.
Walmart’s E-commerce Titan, Flipkart India!
The majority of its revenue is generated through the sale of traded goods, supplemented by earnings from transaction fees paid by vendors and the provision of logistics services.
During the year under review, it generated INR 55,310 Cr in revenue from product sales and INR 513.9 Cr from service sales.
Taking into account interest income and other non-operating sources, Flipkart India’s total revenue in FY23 reached INR 56,012.8 Cr, a notable increase from the INR 51,175.7 Cr recorded in the previous year.
With a 11.5% increase, Flipkart India’s expenses outpaced the growth in its top line. The company’s total expenditure in FY23 reached INR 60,858.5 Cr, compared to INR 54,580 Cr in the previous fiscal year.
The largest expenditure for the company was on the purchase of stock-in-trade, which surged by 1.1 times year-on-year (YoY) to INR 59,816.6 Cr during the year under review.
Additionally, employee benefit expenses experienced a slight uptick, rising to INR 639.2 Cr in FY23 from INR 627.4 Cr in the previous year.
In FY23, the company allocated INR 279.6 Cr toward employee share-based payments, a notable increase from the INR 264.5 Cr spent in FY22.
In the meantime, the inventories of finished goods, work-in-progress, and stock-in-trade decreased during the period.
Flipkart India Private Limited!
In FY23, Flipkart India maintained its receipt of capital from Flipkart Private Limited. Interestingly, despite the increased losses, Flipkart India’s cash and cash equivalents at the close of FY23 surged to INR 599.9 Cr, a significant rise from the INR 3.9 Cr recorded just one year prior.
During FY22, Flipkart’s e-commerce platform, Flipkart Internet, witnessed a significant year-on-year (YoY) increase in its net loss, surging by 1.5 times to INR 4,361 Cr.
At the same time, Walmart continued to increase its ownership in Flipkart. Over the six months ending on July 31, 2023, the US-based retail giant invested $3.5 billion to purchase Flipkart shares from non-controlling stakeholders.
