Flipkart Internet losses rise 40%, revenue up 51% in FY19
today Oct 28, 2019
Flipkart Internet, which runs Flipkart’s e-commerce platform, reported Rs 1,624 crore ($244.11 million) losses in the 2019 financial year, a 40% year-on-year increase. The results suggest a new phase of investment.
Flipkart, which was acquired by the US retail giant Walmart during the 2019 financial year, saw increased operating revenue and increased losses during that time, TNN reported, having accessed the business’ filing at the Ministry of Corporate Affairs. Losses were up 40% year-on-year and operating revenue was up 51% year-on-year totalling Rs 4,234 crore.
The business’ main contributor to revenue was its marketplace services, representing commissions gained from the sellers on its platform, which totalled Rs 1,983 crore. Advertising revenue doubled in the 2019 financial year to Rs 576 crore.
Expenses included Rs 1,889 crore in employee costs, a 91% year-on-year increase. Advertising and promotions costs also rose by 56% to Rs 1,141 crore and legal expenses were up 68% to Rs 377 crore. Walmart had announced that it had expected large losses for Flipkart in the 2019 financial year back when it acquired a 77% state in the business.
“The company’s objective is to seek continual revenue growth, while minimising losses incurred due to increased credit risk exposure,” read Flipkart’s filing at the Ministry of Corporate Affairs, according to TNN. “The company trades only with recognised and credit-worthy third-parties.”
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