Flipkart India revenue touches Rs 50,000 crore, losses widen 40% to Rs 3,404 crore in FY22

The company’s financial year runs from April 1 2021 to March 31 2022.

All of its expenses, including inventory costs, employee salaries, finance costs and depreciation shot up in FY22.

Flipkart India sells goods to online sellers who sell them through the company’s online marketplace entity, Flipkart Internet.

Flipkart Internet posted a 33% rise in operating revenue in fiscal 2022 to Rs 10,476 crore.

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Flipkart marketplace arm revenues jump 33% to Rs 10,476 crore, losses widen 1.5x

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While Flipkart Internet makes revenue through commissions and other services, Flipkart India’s revenue mainly comes from selling goods to these sellers, and also by selling goods through its business-to-business ecommerce marketplace to mom-and-pop stores across the country.

The company also earns revenue by collecting transaction and logistics fees from vendors who place orders through Flipkart’s B2B ecommerce marketplace.

Flipkart India purchased goods worth Rs 53,878 crore in FY22 compared to Rs 47,629 crore in FY21. Its employee benefit costs rose 62% to Rs 627 crore in FY22 from Rs 385 crore in FY21, leading to a 19% increase in overall costs to Rs 54,580 crore.

Flipkart India is among several entities owned by US retailer Walmart, including companies such as fashion etailer Myntra, travel portal Cleartrip and Walmart India (which runs the Best Price wholesale stores) among others. ET reported on October 28 that global retail giants Walmart and Ikea continued to bleed in India as their losses widened in 2021-22 despite a surge in sales, per their latest regulatory filings.

Flipkart’s increasing inventory and employee benefit costs could also be attributed to rising inflation during the first half of the calendar year affecting overall sales.

Flipkart Group CEO Kalyan Krishnamurthy told ET in September that sales were sluggish during the first six months but
started picking up in August.

But the sluggishness is likely to continue. In late October, Delhivery, the country’s largest ecommerce third-party logistics service provider, informed investors that it had a
moderate outlook for the rest of the year, leading to its shares tumbling below their issue price.

Meanwhile, Flipkart-owned
Myntra’s revenue from operations jumped 45% to Rs 3,501 crore, while its losses widened 40% to Rs 597 crore in FY22.