During a recent board meeting, Flipkart’s leadership directed CEO Kalyan Krishnamurthy to significantly reduce the company’s monthly cash burn from the current $40 million (₹340 crore) to around $20 million (₹170 crore), as part of its preparations for a potential IPO in India and a planned shift in its holding structure from Singapore to India.
Cash burn, the rate at which companies spend capital to sustain operations, is especially critical for firms not yet profitable. The board expects Krishnamurthy to reduce Flipkart’s annual burn to $250 million, even as the company expands into quick commerce through Flipkart Minutes, which is set to launch 500 new dark stores in the next eight months. This aggressive expansion pits Flipkart against rivals like Blinkit, Zepto, Swiggy Instamart, and Tata BigBasket.
The balancing act—cutting costs while scaling in a competitive space—raises questions about how Flipkart will prioritize investments. Already, Flipkart has shut down Flipkart Health+ (its pharmacy arm) and downsized other non-core segments. The leadership is now reviewing which units will continue receiving funding and which may be cut back.
In comparison, Zepto, one of Flipkart’s closest competitors in the quick commerce space, had a monthly burn of over ₹250 crore ($30 million). However, Flipkart operates at a larger scale, with a GMV of over $29 billion, compared to Zepto’s $5 billion.
On the financial front, Flipkart Internet, the company’s marketplace business, showed strong performance in FY24—posting ₹17,907 crore in revenue (up 21% YoY), and reducing its losses by 41% to ₹2,358 crore, aided by growth in its advertising business.
The board, which includes figures like Krishnamurthy himself, Lydia Jett, Keki Mistry, and Walmart’s Dan Bartlett, also reaffirmed plans to relocate Flipkart’s legal base to India. A Flipkart spokesperson confirmed this move is in progress, although details remain undisclosed.
These developments come shortly after Flipkart secured $350 million from Google as part of a $950 million round, its first major fundraising since Walmart acquired majority control in 2018. With this move, Flipkart joins other Indian startups like Razorpay, Pine Labs, Meesho, and Zepto that are shifting base to India ahead of planned public listings.
