Walmart-owned e-commerce major Flipkart India posted a 12 per cent rise in its revenue in FY2019-20. According to regulatory filings, Flipkart’s revenues grew to Rs 34,610 crore while its expenses grew to Rs 37,760 crore in 2019-20. Flipkart also reported its largest expense of Rs 37,636 crore for purchase of stock, while its operating revenue stood at just Rs 34,170 crore for FY20. The company’s next biggest expense was its employee benefit expense that stood at Rs 309 crore.
Flipkart reported a net loss of Rs 3,150 crore in the financial year 2019-20, compared to Rs 3,835 crore in the previous year. In September, Flipkart India launched its digital B2B marketplace, Flipkart Wholesale to connect local manufacturers with retailers while helping kirana stores and small and medium enterprises digitize their procurement process. Launched initially in Gurugram, Delhi and Bengaluru, the platform will be expanded to an additional 20 cities with new categories such as home and kitchen and grocery.
Flipkart also aims to rope in over 300 strategic partners and have more than 200,000 listings in two months. In addition, the platform will enable the on-boarding of 50 brands and over 250 local manufacturers in the coming days.
In July this year, Flipkart India announced plans to buy parent Walmart’s loss-ridden cash-and-carry business Best Price to consolidate its portfolio in the country. The unit is being positioned as an answer to Reliance Retail and Amazon’s aggressive moves to woo MSMEs and kirana stores to buy products from them in wholesale and in turn sell those goods to consumers online through their ecommerce marketplaces.