Leading e-commerce company Flipkart’s marketplace arm, Flipkart Internet, observed a 33 per cent rise in operating revenue in fiscal 2022. At the same time, as it spent more on delivering orders as well advertisements and promotions, its loss for the year widened one-and-a-half times.
It incurred a net loss of Rs. 4,361 crore on operating revenue of Rs. 10,476 crore in last fiscal (FY ’21-22).
As per media reports, the company recorded total expenses of Rs. 15,020 crore in the last fiscal year, a 36 per cent jump compared to that of FY ’21, mainly due to delivery expenses, advertisements and promotions, as well as employee benefit expenses.
Platform fees collected from sellers, and services such as shipping and carrying advertisements are the main source to generate revenue for Flipkart Internet.
Revenue from marketplace services remained largely flat at Rs. 2,823 crore while that from advertisements increased 50 per cent to Rs. 2,083 crore while revenue from logistics services grew 57 per cent to Rs. 3,848 crore.
Flipkart Internet spent Rs. 5,045 crore on delivering orders, which was 46 per cent higher compared to the year before. Advertisement and promotional expenses almost doubled to Rs. 1,945 crore from Rs. 1,073 crore.
