The marketplace division of Walmart-owned Flipkart reported a 21% year-over-year (YoY) revenue increase for FY 23-24, soaring to ₹17,907.3 crore. The company's losses also decreased by 41%, amounting to ₹2,358 crore, indicating improved financial performance driven by growth in its advertising sector.
As a marketplace, Flipkart Internet connects sellers with buyers, generating income through sales commissions, advertising opportunities, and value-added services for sellers.
Flipkart Internet generated nearly ₹5,000 crore from advertising in FY23-24, marking a 50.39% increase from ₹3,324.7 crore in the previous year. The revenue from marketplace fees was ₹3,734.2 crore, slightly above the ₹3,713.2 crore recorded in the previous year, while income from collection services rose to ₹1,225.8 crore from ₹1,114.3 crore. This shift in revenue composition shows advertising income now exceeds various marketplace fees, highlighting the e-commerce sector's investment in advertising and its resultant benefits.
The e-commerce giant incurred logistics service costs of ₹6,230.6 crore and around ₹112 crore for storage services during FY23-24. The company earned ₹1,491.5 crore from collection charges associated with payment processing and cash-on-delivery services, alongside generating ₹6,966.4 crore from logistics services provided to sellers. Employee benefits expenses increased to ₹5,177 crore in the current fiscal year, up from ₹4,482 crore in the previous year, reflecting a rise of ₹15.51 crore. The total expenses for the financial year ending March 2024 increased by 8.4% to ₹20,627 crore.
Documents obtained from Tofler indicate that Flipkart Internet's advertising revenue was about ₹4,972 crore, an increase from ₹3,325 crore in the prior year.
These financial results come seven months after Flipkart received ₹1,421 crore (approximately $171 million) from its Singapore parent company through an internal cash transfer. This transfer occurred in two installments on March 23 and April 6, according to the Registrar of Companies (RoC) filings from TheKredible. This marks the second significant fund infusion from the Singapore-based entity into Flipkart Internet, which also received $111 million on March 4, bringing its total funding from Singapore-related entities in 2024 to around $282 million.
Currently, Flipkart leads India's e-commerce market with a 48% share, with a gross merchandise value (GMV) of approximately $29 billion in FY23, far surpassing Meesho’s GMV of over $5 billion.
Recently, Amazon India has seen leadership changes, with former country head Manish Tiwary departing for Nestlé. Samir Kumar, a veteran at Amazon, has stepped in as the new country manager for India, succeeding Tiwary.
