Flipkart’s loss for wholesale arm nearly doubles even as it continues to invest for e-commerce supremacy

By: |
October 28, 2019 5:49 PM

Flipkart had invested Rs 1,431 crore in the wholesale business in January this year for which the parent company was issued 4.86 lakh shares in Flipkart India at Rs 29,399 per share price.

Flipkart video content, Flipkart Video Originals, amazon prime, netflix, hulu, hotstar, zee5, Flipkart content play, tvf play, Studio Next, Frames and Sikhya Productions, Flipkart bollywoodOperating and administrative expenses increased from Rs 23,636 crore during FY18 to Rs 34,678 crore in FY19.

Flipkart India — the wholesale arm of Walmart-owned e-commerce company Flipkart has reported a net loss of Rs 3,836 crore for the financial year 2018-19 — a jump of 85.91 per cent from Rs 2,063 loss for FY18 even as it continues to invest heavily in the Indian e-commerce market where it competes with Amazon India. Flipkart India’s net income increased by 42.82 per cent to Rs 30,931 crore in the last financial year from Rs 21,657 crore during FY18.

Operating and administrative expenses increased from Rs 23,636 crore during FY18 to Rs 34,678 crore in FY19. The amount for depreciation and amortisation went down from Rs 62.2 crore to Rs 24 crore 24.3 crores while finance cost scaled up to Rs 63.7 crore from Rs 23.4 crore, according to the company’s annual report sourced by business signals platform Paper.vc. 

Flipkart had invested Rs 1,431 crore in the wholesale business in January this year for which the parent company was issued 4.86 lakh shares in Flipkart India at Rs 29,399 per share price. In the preceding month, 7.45 lakh shares were issued to Flipkart Private Limited — the parent company at Rs 29,399 per equity share.

Also read: Increase in GST rates not a viable option for SMEs, will lead to unnecessary litigation

On August 18, 2018, Walmart had acquired a controlling stake of 77 per cent in Flipkart for $16 billion. “This is a significant positive development for your company and companies in the Flipkart Group,” the report said.

Flipkart Private Limited in a Singapore-registered entity which operates multiple subsidiaries including the marketplace arm Flipkart Internet, logistics vertical Flipkart Logistics Services, fashion portal Myntra, home appliances and mobile repair portal Jeeves Consumer Services, IT service provider F1 Info Solutions, Instakart Services that operates logistics company ekart, Mintkart (earlier eBay India), payment vertical PhonePe etc. Flipkart is reportedly foraying into food retail with new entity FarmerMart.

Flipkart claimed this year’s annual sale — Big Billion Days to be its biggest event so far where over 50 per cent of its Flipkart Plus shoppers came from tier-II cities and beyond while in terms of sellers, over 40 per cent transacting sellers were from tier-II and beyond cities. Flipkart along with bitter rival Amazon is currently been challenged by traders’ body CAIT for allegedly violating FDI guidelines, along with predatory pricing and deep discounting of goods etc. even as the two e-retailers have claimed full compliance with the laws.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Govt proposes allowing cos with not less than 300 workers to fire staff without its nod
2MTNL working on monetising certain assets in Mumbai
3Amazon, Samara Capital push Rs 275 cr into supermarket chain MORE’s parent as retail space heats up