Home Top news Flipkart revenue growth in FY24 revenue grew 21% to Rs 17,907

Flipkart revenue growth in FY24 revenue grew 21% to Rs 17,907

0

Flipkart Internet, which operates as the marketplace arm of Walmart-owned Flipkart, registered quite impressive growth in revenue in FY24. It registered Rs 17,907 crore of revenue, which translated to an impressive 21% growth as against Rs 14,825 crore in the same period a year ago. Of course, it shows resilience and some amount of strategic growth in such a fiercest battle. But it’s a still-pounded question: Has Flipkart finally turned out to be a profitable player?

Flipkart was able to reduce losses by 41 percent in a positive direction: losses reduced to Rs 2,358 crore versus Rs 4,028 crore the previous year. This is a huge change, reflecting the approach Flipkart has taken to revenue optimization and cost management.

Key Revenue Streams Fueling Growth

The revenues of Flipkart are largely dependent on seller commission, advertising revenue, and service fees towards sellers. Advertising revenue doubled to Rs 5,000 crore in FY23. It was seen that revenues from advertisements more than tripled to Rs 3,324.7 crore in FY23, hence indicating the success of ad solutions invested in by Flipkart.

Marketplace fee revenue was stable at Rs 3,734.2 crore. This means that service engagements with sellers were stable. Its collection services, which include payment processing and cash-on-delivery fees, now stand at Rs 1,225.8 crore from Rs 1,114.3 crore previously. The diversified revenue streams show how Flipkart can use the multiple income avenues within its marketplace ecosystem.

Expenses Management to Enhance Profitability

Strong cost-controlling measures have been marked on the journey towards profitability of Flipkart. Logistic services remained its biggest spend, worth Rs 6,230.6 crore; storage, in turn, added up to Rs 112 crore. Employee expense was an important segment and was estimated to be at Rs 5,177 crore, against Rs 4,482 crore in FY23.

Despite the increased cost of employee benefits, these cost-containment strategies have greatly contributed to Flipkart’s reduced losses. The structured approach in logistics, storage, and employee benefits is a testament to Flipkart’s commitment to driving operational efficiency.

Venturing into Quick Commerce

Recently, Flipkart launched a quick commerce venture called Flipkart Minutes to counter the increased demand for instant deliveries. It will ensure ultra-fast deliveries of daily essentials like groceries, electronics, and smartphones within 10-16 minutes. Flipkart Minutes is also aiming for an increased market share of the quick commerce segment since it has not bid for acquisition in the leading company of this market, Zepto.

What’s in Store for Flipkart?

While profitability remains a primary goal for Flipkart. Its consistent progress in revenue growth combined with cost control and increasing dominance in quick commerce indicate a clear path for maintaining financial health. So what is in store in Indian e-commerce? Here as well, Flipkart’s strategic steps in advertising, quick commerce, and seller services do seem to put the former on the path to a breakthrough into profitability in the near term.

Flipkart is building a competitive advantage in India’s fast-paced digital marketplace by focusing on high-impact growth areas and strategic investments. Learn more with Founderlabs!

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exit mobile version