Flipkart Internet Private Limited, the B2C arm of Walmart-owned Flipkart, saw its operating revenue near the INR 15,000 Cr mark in the year ended March 31, 2023. The marketplace arm’s operating revenue zoomed 42% to INR 14,845.8 Cr in the financial year 2022-23 (FY23) from INR 10,477.4 Cr in FY22.
Flipkart Internet primarily earns revenue through commission charges and other services it offers to merchants, including advertising of products. Including other income, the B2C arm’s total revenue rose 41% to INR 15,044 Cr during the year under review from INR 10,640.5 Cr in FY22.
The company also managed to reduce its cash burn, which helped it reduce its net loss by 9% to INR 4,026.5 Cr during the year under review from INR 4,419.5 Cr in FY22.
Where Did Flipkart’s B2C Arm Spend?
The online marketplace arm’s total expenditure stood at INR 19,043 Cr in FY23, an increase of 27% from INR 15,024.3 Cr in FY22.
Employee Benefit Expenses: The company spent INR 4,482.2 Cr on paying employee salaries, PF contributions, gratuity, among other employee welfare benefits. This number was 20% higher than INR 3,735.7 Cr in FY22. Employee benefit expenses also included ESOP expenses of INR 2,155 Cr in FY23, a jump of 29% from INR 1,668.6 Cr in FY22.
Transportation Cost: The B2C arm spent INR 6,571.2 Cr on transportation expenses in FY23, an increase of 30% from INR 5,045.6 Cr in the previous fiscal year. Transportation cost comprises expenses incurred by the company to move products from one point to another.
Advertising Expenses: To further attract more users to its B2C marketplace, Flipkart spent INR 2,407 Cr on advertising, an increase of 24% from INR 1,945.9 Cr in FY22.
It must be noted that Flipkart’s B2B or wholesale arm, Flipkart India Private Ltd, reported a 9% rise in operating revenue to INR 55,823.9 Cr in FY23 from INR 50,992.5 Cr in FY22. Its net loss rose to INR 4,845.7 Cr, a 1.4X increase from INR 3,404.3 Cr in FY22.
The fresh development comes at a time when amidst the ongoing funding winter, Flipkart has bagged a whopping $600 Mn from its parent Walmart. The startup is likely to raise another $400 Mn in this funding to take on its rival Amazon India.
Flipkart to date has raised over $14 Bn in funding and counts backers such as Tencent, Softbank, Tiger Global, Microsoft, among many others. However, over 70% of the company’s stake is now owned by US retail giant Walmart.
The post Flipkart’s B2C Arm’s Sales Near INR 15,000 Cr Mark, FY23 Loss Dips To INR 4,026 Cr appeared first on Inc42 Media.
