Flipkart Internet, the Walmart-owned marketplace branch Flipkartreported a significant 21% growth in revenue for fiscal year 2023-24, reaching Rs 17,907 crore, up from Rs 14,825 crore in the previous year.
In addition to this increase in revenue, the company managed to reduce its losses by 41%, reducing them from Rs 4,028 million to Rs 2,358 million.
Key revenue flows and changes
The company generated revenue primarily through seller commissions, advertising revenue, and fees for various seller services.
Notably, Flipkart Internet’s advertising revenue rose to nearly Rs 5,000 crore, a jump from Rs 3,324.7 crore in FY23, indicating that the company’s investment in building its advertising business is bearing fruit.
In terms of market rates, revenue remained relatively stable at Rs 3,734.2 million, only slightly up from Rs 3,713.2 million a year earlier.
Revenue from collection services, which includes fees related to payment processing and cash on delivery, also increased to Rs 1,225.8 crore from Rs 1,114.3 crore.
Cost management and expense breakdown.
In its effort to improve profitability, Flipkart Internet implemented cost control strategies in various operational areas.
The company reported logistics services expenses of Rs 6,230.6 crore, along with warehousing costs of nearly Rs 112 crore.
Employee benefit expenses were one of the largest cost categories, amounting to Rs 5,177 crore, an increase from Rs 4,482 crore in FY23.
These structured cost controls have contributed significantly to the reduction of losses.
Expansion in rapid trade
To address the growing demand for fast deliveries, Flipkart recently ventured into the fast commerce sector with its “Flipkart Minutes” service.
Flipkart Minutes is a fast commerce service that offers deliveries of groceries, electronics, smartphones and other products in a time ranging from 10 to 16 minutes.
The service was launched after Flipkart reportedly abandoned its plan acquire a significant stake in Zepto, led by Aadit Palicha.
In April, ET reported that Zepto opted to pursue a financial round rather than a strategic sale, focusing on a valuation boost and preparing for an initial public offering (IPO).
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