According to Business Standard, Flipkart Internet Private Limited, the marketplace division of the Walmart-owned e-commerce giant, posted a net loss of Rs 4,362 crore, an increase of 51% from the prior fiscal year. According to regulatory papers referenced in the story and obtained from the business intelligence platform Tofler, the company’s revenues for the fiscal year 2021–2022 were Rs 10,659 crore, up 31% over the prior fiscal year. The study also stated that the company increased its spending on order delivery as well as on ads and promotions.
Comparing FY21 to FY22, Flipkart Internet’s overall expenses increased by 36% to Rs 15,020 crore. According to a report by Business Standard, this was primarily because of shipping costs, advertising and promotion costs, and staff benefits.
The report also stated that compared to the previous year, the corporation spent 46% more on logistics-related services. The cost of advertising and promotion nearly increased to Rs 1,945 crore. Additionally, costs for repairs and maintenance went up 50% from the previous year. According to the research, Flipkart Internet makes money from a variety of sources, including services like marketplace, collecting, transportation, storage, and advertising.
In contrast to last year, when marketplace services brought in Rs 2,794 crore, they now bring in Rs 2,823 crore. Compared to last year, advertising revenue jumped by 50% to Rs 2,083 crore. To Rs 3,848 crore, revenue from logistics services increased by 57%.
Myntra Designs Private Limited, a fashion shop owned by Walmart, has disclosed its financial results for the fiscal year 2021–2022. Revenues increased by 46% from the previous fiscal year to Rs 3,610 crore. According to Tofler, the company had a net loss of Rs 597 crore during the same fiscal year. This is an increase of 40% from the previous fiscal year. The company claimed having spent Rs 4,206 crore in total during the fiscal year.
Flipkart spent $1.1 billion between February 1 and July 31 on mergers and acquisitions, capital expenditures, and working capital requirements for the e-commerce platform as well as fashion arm Myntra and payments platform PhonePe, according to documents parent company Walmart filed with the US Securities and Exchange Commission (SEC).
Kalyan Krishnamurthy, the chief executive officer of Flipkart, has stated that due to the macroeconomic environment’s uncertainty, the company would be more cautious when making investments in businesses and acquisitions. The company will put more effort into staking out the wagers it placed in the last 12 to 18 months, such as those on travel, health, and externalising its supply chains.
The Big Billion Days (TBBD), an eight-day holiday sale hosted by an e-commerce company, saw over 1 billion visits from customers, according to Flipkart. According to a source cited by Business Standard, there were over 700 million such client visits at the event last year.