Flipkart Ltd. has narrowed its losses to Rs 17,231 crore for the fiscal ended March 2019, while revenues grew by 42 percent over the previous year, according to financial data platform Paper.vc. The group managed to achieve a 63-percent reduction in losses from Rs 46,895 crore in 2018 to Rs 17,231 crore for the financial year ending March 31, 2019. Flipkart posted Rs 42,878 crore revenue from contracts with customers with total revenue adding up to Rs 43,615 crore. The group’s revenue in 2018-19 was 42 percent higher than the previous year’s revenue of Rs 30,644 crore (USD 4.32 billion).
In August 2018, Walmart had picked up 77 percent stake in Flipkart for USD 16 billion. Flipkart group operates a number of entities like e-commerce marketplace Flipkart, fashion portals Myntra and Jabong, digital payments through PhonePe, a wholesale unit and EKart (logistics). The group’s overall expenses went down significantly from Rs 46,895 crore (USD 6.6 billion) in 2018 to Rs 17,281 crore (USD 2.4 billion), attributing the decline to a steep reduction in finance costs. Excluding finance costs, overall group expenditure went up by 118 percent. Employee-benefit expenses shot up by 58 percent to Rs 4254 crore (USD 600 million).
Flipkart group spent USD 46.8 million on acquisition in 2019, including USD 21.4 million on the September 2018 acquisition of Israel-based Upstream Commerce and USD 10.5 million on the acquisition of Bengaluru-based Liv AI.
In October, Flipkart Group had announced the promotion of Jeyandran Venugopal, who previously served as the Chief Technology Officer at Flipkart Group firm, Myntra, as chief product and technology officer (CPTO). He will provide strategic leadership to the organisation and define the technology vision for the company with specific focus on building future capabilities across product and engineering.