Flipkart Internet Private Limited, the B2B division of Walmart-owned Flipkart, reported impressive growth for the fiscal year ending March 2024. Gross revenue jumped by 26.4%, crossing Rs 70,000 crore as the Bengaluru-based firm also reduced its annual losses by 13.5%.
According to its consolidated financial statements from Tofler, Flipkart Internet’s gross revenue, also known as Gross Merchandise Value (GMV), surged to Rs 70,542 crore (around $8.5 billion) in FY24, up from Rs 55,824 crore in FY23. Additionally, non-operating income added Rs 302 crore, boosting total income to Rs 70,844 crore. Flipkart Internet’s B2B operations generate revenue through product sales to resellers and fees from referral commissions and advertisements, supporting distribution across various product categories like mobile devices, electronics, apparel, and groceries.
Flipkart Internet’s financial report also includes contributions from associates and joint ventures such as Arvind, Ninjacart, Rubans, SASSAFRAS, and Inddus. In FY24, the company’s expenses saw a notable increase, with material costs rising by 23.8% to reach Rs 73,624.2 crore, driven by investment in workforce and financial arrangements. Employee-related expenses rose from Rs 639.2 crore to Rs 684.4 crore, while logistics costs amounted to Rs 299.9 crore. Despite these elevated expenses, Flipkart Internet successfully reduced its annual losses by 13.2%, totaling Rs 4,248 crore for the fiscal year.
However, cash outflows from operations surged 77.4%, reaching Rs 6,392.7 crore, and cumulative outstanding losses climbed to Rs 26,407 crore by FY24’s end. With a significant reduction in losses, Flipkart Internet appears poised to achieve profitability soon, as cash flow improvements may materialize even sooner.
As B2B e-commerce becomes integral to Flipkart’s profitability strategy in India, enhancements like streamlined GST invoicing and claims processes have contributed to a more efficient experience for business clients. However, competition remains intense, especially with rivals like Amazon Business and Moglix in the market. Walmart’s directive for Flipkart to start demonstrating profitability six years post-acquisition underscores the focus on driving margins and cementing its position in the Indian e-commerce landscape.
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