Flipkart Internet Private Limited, the B2B arm of Walmart owned Flipkart, reported significant growth in gross revenue which spiked 26.4% and crossed the Rs 70,000 mark in the fiscal year ending March 2024. Moreover, the Bengaluru-based firm also reduced losses by 13.5% in the same period.
Flipkart Internet’s gross revenue, also known as GMV, from operations rose to Rs 70,542 crore (approximately $8.5 billion) in FY24, up from Rs 55,824 crore in FY23, according to its consolidated financial statement sourced from Tofler.
The company also earned Rs 302 crore from non-operating activities, bringing its total income to Rs 70,844 crore in FY24.
Flipkart Internet generates revenue by selling products to resellers and through commissions on referrals and advertisements. The platform offers distribution of mobile, television, laptop, tablet, mobile accessory, footwear, clothing, grocery et al.
The company’s financial statements also count associates and joint ventures including Arvind, Ninjacart, Rubans, SASSAFRAS, and Inddus.
Flipkart Internet saw a notable rise in expenses in FY24, with the cost of materials increasing by 23.8% to Rs 73,624.2 crore from Rs 59,450 crore in FY23. This increase was accompanied by spikes in other expenses, including employee benefits and finance costs, highlighting continued investment in workforce growth and funding arrangements.
Employee benefit expenses climbed to Rs 684.4 crore from Rs 639.2 crore the previous year, and logistics costs amounted to Rs 299.9 crore in FY24. Despite these escalating expenses, the firm managed to reduce its loss by 13.2%, bringing it down to Rs 4,248 crore for the fiscal year.
However, operating cash outflows surged by 77.4%, reaching Rs 6,392.7 crore, and cumulative outstanding losses rose to Rs 26,407 crore by the end of the last fiscal year (FY24).
haWith losses well below the 10% mark now, the firm looks set to declare a profit soon, and should be cash flow positive sooner than that. B2B ecommerce was always a key part of the profitability story in India, and should deliver results well before the consumer facing business turns around. A smoother experience for business customers with issues like GST invoicing and claims has no doubt helped, leaving the firm with a required focus on the core business of wringing out better margins from sales. Besides Amazon Business, the firm has to contend with competition from the likes of Moglix and more, which will keep employees on their toes, with owner Walmart virtually declaring a clear message to start showing profits in the India business, 6 years after it bought it.
