Flipkart had in July this year announced the acquisition of Walmart India operations, which operated the 28 Best Price cash-and-carry wholesale stores, that offered nearly 5,000 items and also had two fulfillment centers based in Lucknow and Hyderabad.
Flipkart competes with Amazon in the hyper competitive e-commerce market in India. Image: Reuters
Walmart-owned Flipkart’s wholesale arm Flipkart India Private Limited has reported a 12 per cent increase in its FY20 revenues to Rs 34,610 crore from Rs 30,931 crore in the last financial year. Its losses, however, decreased 18 per cent to Rs 3,150 crore in FY20 from Rs 3,835 crore in FY19. On the other hand, expenses saw a marginal increase of 8.6 per cent to Rs 37,760 crore from Rs 34,766 crore during the said period, according to the company financials accessed by business intelligence platform Tofler. Engaged in the business of wholesale distribution of mobile, television, laptop, tablet, mobile accessory, footwear, clothing, etc., on business-to-business basis had ‘Purchases of Stock or goods in Trade’ worth Rs 37,636 crore in FY20 up from Rs 34,396 crore under expenses in the preceding financial year.
Comments from Flipkart on FY20 performance will be updated here as and when shared.
Flipkart had in July this year announced the acquisition of Walmart India operations which operated the 28 Best Price cash-and-carry wholesale stores that offered nearly 5,000 items and also had two fulfillment centers based in Lucknow and Hyderabad. The company had simultaneously launched its B2B marketplace – Flipkart Wholesale – for small sellers and kiranas to enable them to procure goods in categories including grocery, general merchandise, or fashion along with offering schemes and incentives. The company is now reportedly nearing the completion of absorbing Walmart India into its business. In 2018, Walmart had acquired a 77 per cent stake in Flipkart.
Flipkart Group, which also included Myntra and PhonePe, had recently emerged as the leading e-commerce marketplace during the festive sales month between mid-October to mid-November 2020 with around 66 per cent GMV share worth $8.3 billion, according to a RedSeer report. Its biggest competitor Jeff Bezos Amazon’s India business was able to secure 34 per cent share. The festive month saw overall online sales up 65 per cent from the year-ago sales worth $5 billion and more than the predicted $7 billion this festive season by the consultancy firm. “Flipkart has done pretty well across the board and leading categories which are mobiles and fashion. They have also done well in large appliances. At an aggregate level they have served the needs of Tier-II customers well as they were the most important segment this year,” Mrigank Gutgutia, Director E-commerce, RedSeer Consulting had told Financial Express Online.