Hindustan Times ST (Mumbai) - HT Navi Mumbai Live
Flipkart’s FY22 net loss widens
NEW DELHI: Flipkart reported 31% revenue growth in 2021-22 to ₹10,659 crore, but its net loss widened 51% to ₹4,362 crore during the fiscal year due to rising transportation, marketing and legal expenses.
Its operating revenues rose to ₹10,477 crore in FY22 compared to ₹7,804 crore in FY21, according to data accessed by business intelligence platform Tofler. Flipkart-owned fashion etailer Myntra’s operating revenue rose 45% to ₹3501.2 crore in FY22. It reported loss of ₹597.6 crore, up from ₹429 crore in the year before.
On the other hand, Amazon India posted 32.5% annual revenue growth to ₹21,462 crore for the marketplace vertical, Amazon Seller Services. It also narrowed its losses by 23% to ₹3,649 crore in FY22.
Flipkart’s revenue is primarily generated from the e-commerce marketplace, advertisement and collection services, besides related support services including corporate agent service for insurance companies.
Flipkart earned ₹3,848 crore and ₹2,083 crore via its logistics and advertising verticals, respectively. Collections from marketplace services was flat at ₹2,823 in FY22 crore against ₹2,794.6 crore in FY21.
Amazon made ₹18,703 crore from its marketplace services.
The total expense of Flipkart’s marketplace arm was at ₹15,020 crore against ₹10,996 crore in FY21. The company’s earnings before interest, taxes, depreciation and amortization loss, or operating loss jumped to ₹3,925 crore in FY22 from ₹2,267 crore in the year ago.
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.
Flipkart is considering raising $2-3 billion at a valuation of over $40 billion to expand its product range in India and challenge rivals, Mint reported on Wednesday.
The company raised around $3.6 billion in July 2021, and has deployed most of the capital, with only $700-800 million remaining. A company spokeswoman, however, said it has no fundraising plans at the moment.