Flipkart Internet, the marketplace division of Walmart-owned Flipkart, has demonstrated robust financial performance in FY24, recording a 21% year-over-year revenue growth to reach Rs 17,907 crore, up from Rs 14,825 crore in the previous fiscal year. This growth comes alongside a significant 41% reduction in losses, which decreased from Rs 4,028 crore to Rs 2,358 crore.
In a notable shift in revenue composition, the company’s advertising business has emerged as a major growth engine, generating nearly Rs 5,000 crore in FY24, a substantial increase from Rs 3,324.7 crore in FY23. This transformation highlights the success of Flipkart’s strategic investment in building its advertising capabilities.
The marketplace’s traditional revenue streams showed steady performance, with marketplace fee income holding relatively stable at Rs 3,734.2 crore, compared to Rs 3,713.2 crore in the previous year. Collection services revenue saw modest growth, rising to Rs 1,225.8 crore from Rs 1,114.3 crore.
While driving revenue growth, Flipkart Internet has maintained focus on cost management and operational efficiency. The company’s total expenses increased by 8.4% to Rs 20,627 crore in FY24, with significant allocations including Rs 6,230.6 crore for logistics services and Rs 5,177 crore for employee benefits, the latter showing an increase from Rs 4,482 crore in FY23.
In a strategic move to capture the growing quick commerce market, Flipkart has launched “Flipkart Minutes,” a rapid delivery service offering groceries, electronics, and smartphones with delivery times ranging from 10-16 minutes. This initiative comes after the company reportedly considered and ultimately decided against acquiring a stake in quick-commerce startup Zepto.
Group CEO Kalyan Krishnamurthy’s internal focus on profitability has been reflected in the company’s financial results, with organizational restructuring contributing to lower operating costs. The company has maintained its competitive edge while improving financial metrics, earning Rs 6,966.4 crore from providing logistics services to sellers and Rs 1,491.5 crore in collection charges.
These results demonstrate Flipkart’s successful evolution from a pure marketplace to a diversified e-commerce ecosystem. The significant growth in advertising revenue particularly highlights the company’s ability to create new revenue streams while maintaining its core marketplace business.
The improved financial performance comes at a crucial time for India’s e-commerce sector, which is seeing increased competition and evolving consumer preferences. Flipkart’s ability to reduce losses while growing revenue suggests a maturing business model that could set new benchmarks for the industry.
Looking ahead, Flipkart’s entry into quick commerce and continued focus on operational efficiency indicate the company’s commitment to maintaining its leadership position in India’s e-commerce landscape while working towards sustainable profitability.
