Flipkart Internet, the marketplace arm of Walmart-owned e-commerce giant Flipkart, posted a 50% growth in its logistics segment — the largest by revenue, helping the company boost its topline and cut losses by 9% during financial year 2022-23.
The arm posted a loss of Rupees 4,027 crore in FY23, slightly lower than Rupees 4,420 crore it had posted in the preceding year, showed its RoC filing sourced through Private Circle.
Even as expenses jumped 26%, a broad-based growth across its segment aided revenue growth, which rose 42% year-on-year to Rupees 14,846 crore. To bolster its last-mile logistics and doorstep delivery, Flipkart had picked up a minority stake in logistics startup Shadowfax in 2019 for $60 million. Over the years, the company has invested heavily to improve its supply chain management.
In FY23, its logistics business posted a revenue of Rupees 5,789 crore, while that of marketplace services rose 32% y-o-y to Rupees 3,713 crore. Besides these, its advertisement revenue accounted for a large portion of the pie. Sales from the segment grew 60% y-o-y to Rupees 3,325 crore.
The arm’s total expenses rose to Rupees 19,043 crore in FY23, from Rupees 15,024 crore a year ago, mainly due to surging employee costs, advertising and other expenses. The company spent Rupees 4,482 crore towards employee-related expenses, compared with Rupees 3,735 crore a year ago, while advertising costs were Rupees 2,407 crore, up from Rupees 1,945 crore.