Walmart’s Indian unit recorded a net loss of Rs 4,361 crore on operating revenue of Rs 10,476 crore in the financial year ended March 31, 2022, according to regulatory filings from business intelligence platform Tofler.
Flipkart Internet generates revenue from several sources, including platform fees collected from sellers and services such as shipping and ad fulfillment.
Revenue from market services remained broadly flat at Rs 2,823 crore while that from advertisements increased by 50% to Rs 2,083 crore. The Indian company is the largest contributor to parent company Walmart’s advertising revenue globally.
ET reported on September 13 that Flipkart rival Amazon India
had generated Rs 4,171.4 crore from advertising services .
Revenue from logistics services increased by 57% to Rs 3,848 crore.
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The company recorded total expenditure of Rs 15,020 crore in the last fiscal year, a jump of 36% from FY21, largely due to delivery costs, advertisements and promotions, as well as benefits expenses.
Flipkart Internet spent Rs 5,045 crore to deliver the orders, which is 46% more than the previous year. Advertising and promotion expenditure nearly doubled to Rs 1,945 crore from Rs 1,073 crore.
ET reported on September 13 that Amazon Seller Services, which operates the Amazon India marketplace
reported a 32% increase in overall revenue to Rs 21,633 croreon a stand-alone basis in FY22.
Seattle-based Amazon’s local unit had also cut its losses by nearly 23% to Rs 3,649 crore in FY22.
The increase in Internet Flipkart spending comes at a time when e-commerce companies have seen inflation stunt their growth,
that ET reported on July 25 . In an interaction with ET on September 16
Flipkart Group Managing Director Kalyan Krishnamurthy says e-commerce sales picked up in Augustafter a sluggish start to 2022.
ET reported on Oct. 7, citing Walmart’s U.S. regulatory filings, that the Indian unit
spent about $1.1 billion between February and August. The company has invested more than $800 million in its market business, new healthcare business and fashion retailer Myntra.
Flipkart has made several acquisitions over the past two years, having bought travel portal Cleartrip, e-pharmacy startup Sasta Sundar and ANS Ecommerce, a comprehensive e-commerce tool, in addition to investing in startups such as Ninjacart and Shadowfax.
As online platforms surged in holiday season sales this year, Delhivery, the largest third-party e-commerce logistics company, predicts subdued growth expectations, citing inflation, raising concerns about the impact on the e-commerce sector.