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Flipkart marketplace arm’s revenue jumps 42% to Rs 14,845 crore in FY23, loss narrows 9%, ET Retail

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Flipkart Internet, the marketplace arm of ecommerce major Flipkart, reported a 42% growth in operating revenue for financial year 2023 to Rs 14,845 crore while its total loss narrowed by 9% to Rs 4,026 crore, according to regulatory filings.

The firm had made Rs 10,477 crore in operating revenue in FY22 while incurring a total loss of Rs 4,419 crore.

Walmart-owned Flipkart runs its India business through various entities, and Flipkart Internet runs the marketplace where the firm earns its revenue in the form of seller commissions, advertising income, and other fees for seller services.

Its earnings from offering logistical services grew 50% to Rs 5,789 crore in FY23, filings sourced from business intelligence platform Tofler showed. The company earned another Rs 3,713 crore from offering marketplace services in FY23, 32% higher than what it earned in FY22. Advertising revenue was at Rs 3,324 crore in FY23, up from Rs 2,083 crore a year earlier.

Total expenses grew 26% on year to Rs 19,043 crore in FY23. Employee benefit expense was at Rs 4,482 crore, up from Rs 3,735 crore a year earlier.

The firm spent Rs 6,571 crore on logistics in FY23, up 30% from a year ago, while advertising and promotional expenses rose to Rs 2,407 crore from Rs 1,945 crore.

On October 24, ET had reported that Flipkart’s wholesale arm Flipkart India posted a 9% growth in its operating revenue for FY23 to Rs 55,823 crore even as its loss widened by 42% to Rs 4,845 crore. Flipkart India sells goods to online sellers who sell through the company’s online marketplace entity, which is Flipkart Internet.

The two entities are essential to the operation of Flipkart in India.

Walmart also owns apparel-focused platform Myntra, travel portal Cleartrip, and Walmart India that runs the Best Price wholesale stores, among others.

ET reported on December 21 that Flipkart is in talks to raise as much as $1 billion, with parent Walmart committing to inject $600 million. This would be the first fundraise for India’s largest online retailer since 2021 when it closed a $3.6-billion funding round at a valuation of $37.6 billion.

The fresh fundraise is likely to value Flipkart at about 5-10% premium to its latest valuation of around $33 billion, which it reached after fintech firm PhonePe was separated from the group in December 2022.

Earlier this year, Walmart had also facilitated a $750-million one-time payout for Flipkart employees as part of PhonePe’s latest funding round and separation from the Flipkart group.

Amazon Seller Services, the marketplace arm of Amazon India, saw its net loss widen 33% to Rs 4,854 crore in FY23, while its operating revenue grew 3.42% to Rs 22,198 crore.

  • Published On Dec 28, 2023 at 08:43 AM IST

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