Flipkart Lost Rs 9.3 Crore/Day In Last 365 Days: Rs 54,000 Crore Revenues, Rs 51,000 Crore Expenses
All is not well with the ecommerce giant Flipkart as according to financial data accessed by business intelligence platform Tofler, the ecommerce giant has seen a widening in the net loss.
Increase in Consolidated Net Loss
Despite the increase in revenues, the consolidated net loss widened to Rs 3,413 crore in the financial year 2021-22.
A net loss of Rs 2,445.6 crore in the previous financial year 2020-21 was reported by the company.
Speaking on the standalone basis, the Walmart group-owned firm saw a net loss increase from Rs 2,444.8 crore in 2020-21 to Rs 3,404.3 crore during 2021-22.
In FY21, the net total income both on standalone and consolidated basis increased by about 18 per cent to Rs 51,175.7 crore from Rs 43,349.1 crore.
Tofler said that the company’s total expenses for the fiscal were reported at Rs 54,580 crore.
What is Causing Losses?
The losses are rising due to rising transportation, marketing and legal expenses. The primary revenue generation from the ecommerce giant is through the -commerce marketplace, advertisement and collection services, besides related support services including corporate agent service for insurance companies.
In FY22, Flipkart forayed into video streaming, distribution and hosting services. It developed original content as well as used content by other service providers, besides running advertising, promotions and loyalty programmes.
In order to expand its product range in India and challenge rivals, the company is considering raising $2-3 billion at a valuation of over $40 billion.
Recently, the company also acquired stakes in 63Ideas Infolabs, which operating the Ninjacart brand. Also, and 50 per cent stake in Childrenite Private were also acquired.
Founded in 2015, the 63Ideas Infolabs Pvt. Ltd operated Ninjacart initially began as a hyper-local grocery delivery company. Later, the company shifted to a B2B setup.
Farmers can sell vegetables and fruits directly to business establishments such as shops, retailers and restaurants via the startup’s platform.
The announcement of the investment by Walmart and Flipkart comes after Ninjacart raised Rs 625 crore ($90 million) from the US-based investment firm Tiger Global Management in April this year. The investment resulted in Tiger picking up a 26.47% stake in the company.