Flipkart India, the wholesale arm of e-commerce retailer Flipkart, posted a turnover of Rs 15,264.4 crore for the year ended March 2017, an increase of 15.8% over Rs 13,177 crore in revenues for FY16, filings with the Registrar of Companies and data platform Tofler showed. The net worth of the company stood at Rs 3,946.6 crore. Losses in FY16 had narrowed to Rs 544.3 crore from Rs 828.2 crore in the previous year. In August this year, as per RoC filings, the wholesale arm received working capital credit of Rs 375 crore from Axis Bank. Flipkart, which is caught in a bitter battle with US-based Amazon, received fresh fire power in August this year when Japan’s Soft Bank via its Vision fund invested about $2.5 billion in the company for a 20% stake in the e-commerce firm. With the investment, Flipkart’s cash reserve crossed $4 billion.
Despite infusion of fresh funds, mutual fund investor Valic in November this year marked down Flipkart’s valuation to about $7.9 billion – much less than $11.6-billion valuation at which Flipkart raised funds earlier this year. Moreover, Valic had valued Flipkart at about $8.5 billion in the previous quarter. Flipkart, which until 2015 was valued at about $15 billion, had witnessed a decline in its valuation in the last one year, especially in 2016, with several mutual investors lowering the company’s valuation. Moreover, Flipkart Internet, the company operating the online commerce platform —flipkart.com — reported a net loss of Rs 2,306 crore for the year ended March 31, 2016, according to RoC filings. Losses doubled from Rs 1,096 crore during FY15.
For FY16, Flipkart Internet reported total revenue of about Rs 1,952 crore, which also rose more than two times from Rs 772.5 crore in FY15. Flipkart Internet earns revenues via commission which sellers pay to the company on every sale. Flipkart India operates the wholesale arm of the company while Flipkart Internet is the customer-facing platform of Flipkart.com.