Flipkart Reports Strong Growth in Revenue and Significant Reduction in Losses for FY 2023-24

• ByStartupStory     |    October 29, 2024

Flipkart Internet, the marketplace arm of Flipkart, has announced impressive financial results for the fiscal year 2023-24, showcasing revenues of Rs 17,907.3 crore, reflecting a nearly 21% year-on-year growth. The company’s losses also saw a substantial decline, falling 41% to Rs 2,358 crore, as per regulatory filings obtained from the business intelligence platform Tofler.

This marks the second consecutive year of over 20% revenue growth for Flipkart Internet, coupled with a significant reduction in losses. The company, owned by Walmart, operates its India business through multiple entities, with Flipkart Internet managing the marketplace operations. This entity primarily generates revenue through seller commissions, advertising income, and various fees associated with seller services.

In FY 2023-24, Flipkart Internet’s advertising revenue soared to nearly Rs 5,000 crore, up from Rs 3,324.7 crore in the previous year. Additionally, the marketplace fee income for the financial year stood at Rs 3,734.2 crore, slightly higher than Rs 3,713.2 crore in the preceding fiscal year. Income from collection services also rose to Rs 1,225.8 crore, compared to Rs 1,114.3 crore during the same period. This shift marks a significant change in Flipkart’s revenue mix, with advertising income now surpassing various marketplace fees. “Ecommerce platforms have been investing in building the advertisement business, and now they are reaping its benefits,” remarked an industry expert.

The revenue growth and loss reduction come as Flipkart’s group CEO, Kalyan Krishnamurthy, reiterated an internal focus on profitability, which has been supported by considerable organizational restructuring, leading to lower operating costs. In 2023-24, the company incurred logistics services costs of Rs 6,230.6 crore and approximately Rs 112 crore for storage services. Flipkart earned Rs 1,491.5 crore in collection charges, which include fees related to payment processing and cash-on-delivery collections, while generating revenue of Rs 6,966.4 crore from providing logistics services to sellers. Employee benefits accounted for Rs 5,177 crore, an increase from Rs 4,482 crore in the prior fiscal year.

In a strategic move to meet the growing demand for rapid delivery, Flipkart has entered the quick commerce market with its “Minutes” service. This initiative aims to compete with rivals like Blinkit, Zepto, and Swiggy Instamart, who promise deliveries within 10-20 minutes for groceries, electronics, and other items.

In the broader ecommerce landscape, Amazon India has undergone a leadership change, with former country head Manish Tiwary leaving to join Nestlé. Samir Kumar, a veteran of Amazon who joined in 1999 and played a significant role in establishing the company’s operations in India, has been appointed as the new country manager for India. As the quick commerce market heats up, Amazon has set an ambitious target to launch in this segment by the first quarter of 2025, according to a report by ET on August 28.

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