Flipkart Internet’s Operating Revenue Nears INR 15,000 Crore in FY23

• ByStartupStory     |    December 28, 2023

Flipkart Internet Private Limited, the business-to-consumer (B2C) arm of Walmart-owned Flipkart, witnessed a significant increase in its operating revenue, reaching close to the INR 15,000 crore mark in the financial year ending on March 31, 2023. The company’s marketplace arm experienced a substantial surge in operating revenue, soaring by 42% to INR 14,845.8 crore in FY23 from INR 10,477.4 crore in FY22.

Flipkart Internet primarily generates revenue through commission charges and various services provided to merchants, including product advertising. Including other income sources, the B2C arm’s total revenue surged by 41% to INR 15,044 crore during the year under review, up from INR 10,640.5 crore in FY22.

The company also managed to reduce its cash burn, leading to a 9% decrease in net losses, which amounted to INR 4,026.5 crore in FY23 compared to INR 4,419.5 crore in FY22.

In terms of expenditures, Flipkart Internet’s total spending in FY23 stood at INR 19,043 crore, marking a 27% increase from INR 15,024.3 crore in FY22.

Breakdown of Expenditures:

Employee Benefit ExpensesThe company allocated INR 4,482.2 crore towards employee salaries, PF contributions, gratuity, and other welfare benefits, representing a 20% increase from INR 3,735.7 crore in FY22. This figure includes Employee Stock Ownership Plan (ESOP) expenses of INR 2,155 crore, a 29% rise from INR 1,668.6 crore in FY22.

Transportation Cost:Flipkart’s B2C arm incurred INR 6,571.2 crore on transportation expenses in FY23, up by 30% from INR 5,045.6 crore in the previous fiscal year.

Advertising Expenses:To enhance its user base, Flipkart invested INR 2,407 crore in advertising, marking a 24% increase from INR 1,945.9 crore in FY22.

In contrast, Flipkart’s B2B or wholesale arm, Flipkart India Private Ltd, reported a 9% rise in operating revenue to INR 55,823.9 crore in FY23 from INR 50,992.5 crore in FY22. However, its net loss increased to INR 4,845.7 crore, a 1.4X rise from INR 3,404.3 crore in FY22.

These developments coincide with Flipkart’s recent funding success, securing a substantial $600 million from its parent company, Walmart, amidst the ongoing funding challenges. The company is expected to raise an additional $400 million in this funding round to strengthen its position against its competitor, Amazon India.

Flipkart has amassed over $14 billion in funding to date, with support from investors such as Tencent, Softbank, Tiger Global, Microsoft, and others. However, the majority of the company’s stake, over 70%, is now held by the US retail giant Walmart.

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