Flipkart India recorded a total loss of (INR 2,063.8 Cr), which is a jump of more than 700%,
Flipkart Internet posted a consolidated loss of (INR 1,160.6 Cr) for FY18, a fall of 29%
Walmart has also set up a function called ‘Partnership Services’ to help Flipkart Group expand by leveraging its global scale and best practices
Global retailer Walmart-owned Flipkart has announced its financial results for both its B2B arm – Flipkart India and ecommerce platform – Flipkart Internet.
According to the documents sourced from Tofler, a business intelligent platform for India, Flipkart India recorded a total loss of $280.4 Mn (INR 2,063.8 Cr), which is a jump of more than 700%, as compared to $33.29 Mn (INR 245.04 Cr) in FY17. At the same time, Flipkart Internet posted a consolidated loss of $157.68 Mn (INR 1,160.6 Cr) for FY18, which is 29% less than the previous year’s $222.83 Mn (INR 1,640.2 Cr).
The combined loss of the two Flipkart entities — Flipkart India and Flipkart Internet— was recorded as $434.7 Mn (INR 3,200 Cr) in FY18.
Here are some key statistics of the fiscal year for these entities:
- Operational revenue of Flipkart India saw a jump of 40% to $2.19 Bn (INR 21,438.65 Cr) in FY18 from $2.07 Bn (INR 15,264.42 Cr) in FY17
- For Flipkart Internet, the revenues from operations were $37.92 Mn (INR 279.2 Cr), a 48.3% jump from $25.57 Mn (INR 188.24 Cr) in the previous year
- The total revenues for Flipkart India were (INR 21,657,6 Cr), against (INR 15,569.26 Cr) in the previous year
- Flipkart Internet’s total Revenue was (INR 3060.2 Cr), against (INR 2253.5 Cr)
- With huge sales, delivery promises to customers etc, Flipkart India spent $2.94 Bn (INR 331.54 Cr), a 99% jump from $22.63 Mn (INR 166.6 Cr)
- At the same time, Flipkart internet decreased its expenses on employees reaching $134.23 Mn (INR 988 Cr) from $140.38 Mn (INR 1032.8 Cr)
- Flipkart Internet’s net worth for the fiscal year was $237.7 Mn (INR 1,749.80 Cr)
- The net worth for Flipkart India was $863.12 Mn (INR 6,353.60 Cr)
Flipkart’s holding company is registered in Singapore. The revenue of Flipkart Internet is mainly generated from services like seller commission and from the sale of products on the marketplace.
Flipkart Internet operates as a subsidiary of Flipkart Private Ltd. which is currently in a tough war with players such as Amazon India and Paytm Mall, among others. However, with Walmart acquiring Flipkart for $16 Bn, the ecommerce company is now preparing to touch the international markets.
Earlier this month (October 18), reports surfaced that Myntra has started selling its private brand named All About You at Walmart stores in Canada. All About You, launched in 2015, is a women fashion brand that’s endorsed by well-known Bollywood actor Deepika Padukone.
Walmart has also set up a function called ‘Partnership Services’ to help Flipkart Group expand by leveraging its global scale and best practices.
For now, Flipkart can be given the benefit of doubt, considering the period ending at March 31, 2018, as a battle of dominance with its arch rivals. With the Flipkart Group eyeing an IPO in possibly the next three years, and with a backing from global retail giant Walmart, now the financials for the next financial year are expected to clear the picture further.
(With inputs from Bhumika Khatri)