Flipkart's Loss Widens 51% To Rs 4,362 Crore In FY22, Revenue Up 31%

Flipkart Internet’s total expenses for the fiscal saw a jump of 36 per cent to Rs 15,020 crore, compared with FY21.

Flipkart Internet’s total expenses for the fiscal saw a jump of 36 per cent to Rs 15,020 crore

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Flipkart Internet Private Limited, the marketplace arm of the Walmart-owned e-commerce giant, reported a net loss of Rs 4,362 crore, an increase of 51 per cent from the last financial year, reported Business Standard. The report cited regulatory documents sourced from the business intelligence platform Tofler saying company’s revenues for the financial year 2021-22 was Rs 10,659 crore, a 31 per cent jump since the last financial year. The firm spent more on delivering orders as well as on advertisements and promotions, the report added.

Flipkart Internet’s total expenses for the fiscal saw a jump of 36 per cent to Rs 15,020 crore, compared with FY21. This was mainly due to expenses related to delivery, advertisements and promotions and employee benefit, Business Standard’s report said. 

Report further added that the c

ompany spent 46 per cent higher on services related to logistics compared with last year. Advertising promotional expenses almost doubled to Rs 1,945 crore. Repairs and maintenance expenses also increased 50 per cent compared to the last year. Flipkart Internet generates revenue from various sources including from services such as marketplace, collection, logistics, storage and advertisement, the report said.

Revenue from marketplace services was Rs 2,823 crore compared to Rs 2,794 crore last year. Advertisement revenues increased 50 per cent to Rs 2,083 crore compared to last year. Revenue from logistics services grew 57 per cent to Rs 3,848 crore.

The Walmart-owned fashion retailer Myntra Designs Private Limited also reported its earnings for the financial year 2021-22. Revenues stood at Rs 3,610 crore, a 46 per cent jump since the last financial year. The company’s net loss was Rs 597 crore during the same fiscal, according to Tofler, the report said. This is a 40 per cent increase from the last financial year. The company’s total expenses for the fiscal were reported as Rs 4,206 crore.

According to parent company Walmart’s filings with the US Securities and Exchange Commission (SEC), Flipkart spent $1.1 billion from February 1 to July 31 on mergers and acquisitions, capital expenditure, and working capital requirements for the e-commerce platform as well as fashion arm Myntra and payments platform PhonePe, Business Standard’s report said.

Recently, Flipkart Chief Executive Officer Kalyan Krishnamurthy said that the company would be more cautious in investing in acquisitions and businesses in an uncertain macroeconomic environment. The firm will focus more on growing the bets it made in the past 12-18 months, including health, travel, and externalising its supply chains.

During The Big Billion Days (TBBD), e-commerce firm’s 8-day-long festive sale, Flipkart said it achieved a significant milestone of over 1 billion customer visits on its platform. Last year’s event witnessed over 700 million such customer visits, Business Standard reported citing a source.