Flipkart Internet's operating revenue jumps 42% in FY23, loss declines 9%

Flipkart Internet, the marketplace arm of e-commerce major Flipkart, reported a 42 per cent growth in operating revenue for financial year 2023 to Rs 14,845 crore. Its total loss declined 9 per cent to Rs 4,026 crore, according to data accessed by business intelligence platform, Tofler.

Total expenses grew 26 per cent to Rs 19,043 crore in FY23. Employee benefit expense was Rs 4,482 crore. This is an increase from Rs 3,735 crore in the previous period.

The firm spent Rs 6,571 crore on logistics in FY23. This is 30 per cent increase compared to the previou period. The advertising and promotional expenses increased to Rs 2,407 crore from Rs 1,945 crore.

The Bengaluru-based firm had made Rs 10,477 crore in operating revenue in FY22 and witnessed a total loss of Rs 4,419 crore. According to Tofler data, Flipkart’s earnings from offering logistical services grew 50 per cent to Rs 5,789 crore in FY23. It earned another Rs 3,713 crore from offering marketplace services in FY23. This is 32 per cent higher compared to FY22. Advertising revenue was at Rs 3,324 crore in FY23. This is an increase from Rs 2,083 crore in the previous period.

On October 23, Business Standard reported that Flipkart India posted a 45 per cent increase in net loss at  Rs 4,890.6 crore during 2022-23, against Rs 3,371.2 crore in the previous financial year, according to Tofler. The Walmart-owned company’s consolidated revenues for 2022-23 were at Rs 56,013 crore, a 9 per cent jump over the previous financial year.

The firm’s expenses for the financial year were reported at Rs 60,858 crore, an increase of 11.5 per cent from Rs 54,580 crore in the previous one. This included costs such as the purchase of stock in trade, employee-benefit expenses, and those related to finance.

The company reported various portfolio investments in FY23. These include firms such as Kalyr Retail (22 per cent acquisition), Fonte Fashions (19 per cent acquisition), and Logisticsnow. Other such investments include Neuropixel.AI Labs, Health Arx Technologies, and Meradawai. About Rs 169 crore was spent on these.

There were 1.4 billion customer visits, a record, during its flagship festival sales event, The Big Billion Days (TBBD) 2023.