Flipkart Arm Ekart’s Loss Widens Over 5X To INR 1,718 Cr in FY24

Flipkart’s logistics arm Ekart saw its net losses ballooning to INR 1,718.4 Cr in the financial year 2023-24 (FY24), a more than 5X jump from INR 324.6 Cr loss it incurred in the previous fiscal year.

The degrowth in its bottomline was primarily due to an increase in overall expenses and drop in revenues.

Revenue from operations of Instakart Services, which operates Ekart Logistics, declined 5% to INR 12,115.3 Cr in FY24, compared to INR 12,787.4 Cr a year ago.

The company saw its total expenses rising by over 6% to INR 14,149.4 Cr during the year under review from INR 13,325 Cr in the previous year, mainly on account of higher employee costs and other expenses.

The logistics segment generated revenues to the tune of INR 9,429.8 Cr, accounting for almost 78% of Ekart’s gross operating revenue in FY24. 

Meanwhile, warehousing services made up nearly 10% of the company’s operating revenue during the year under review.

Started in 2009, Ekart Logistics claims to be India’s largest logistics and supply chain company. It operates more than 7,000 trucks, over 70 fulfilment centres, over 80 sortation facilities and 3,500 last-mile delivery hubs to deliver ecommerce shipments across 14,000 pin codes in the country.

Flipkart India, the business to business arm of Flipkart, saw its operating revenue surging over 26% year-on-year to INR 70,541.9 Cr in the year ended March 2024.

This comes days after Flipkart’s marketplace arm, Flipkart Internet reported a strong 21% growth in its revenue to INR 17,907.3 Cr for FY24. 

The company also managed to narrow its losses by 41% YoY to INR 2,358 Cr during the year ended March 2024.

Note: The headline has been edited to correct the loss number.