Flipkart logs loss of Rs 3,837 Cr in 2018-19
The unit had posted a loss of Rs 2,063.8 crore for the financial year ended March 31, 2018, documents filed by Flipkart India to the corporate affairs ministry showed.
Flipkart India, the B2B arm of Walmart-owned Flipkart, has registered a higher loss of Rs 3,836.8 crore during 2018-19 as compared to the previous financial year, according to regulatory documents.
The unit had posted a loss of Rs 2,063.8 crore for the financial year ended March 31, 2018, documents filed by Flipkart India to the Corporate Affairs ministry showed.
"...company incurred a net loss of Rs 38,368 million during the financial year under review as against the net loss of Rs 20,638 million in the previous financial year. There has been an increase in the net loss by 85.91 percent," the documents sourced by Paper.vc said.
Flipkart Group CEO, Kalyan Krishnamurthy
Flipkart India's revenue from operations, however, saw a 42.82 percent jump to Rs 30,931 crore in 2018-19 from Rs 21,657.7 crore in the previous financial year, it added.
Flipkart, which is locked in a battle against rival Amazon, has its holding company registered in Singapore.
It operates different entities for various functions and provides e-commerce services through Flipkart Internet.
According to reports, Flipkart Internet has seen a 40 percent increase in losses to Rs 1,624 crore for the year ending March 31, 2019. The unit saw operating revenues expand by 51 percent to Rs 4,234 crore in 2018-19 as against the previous fiscal.
Flipkart India Pvt Ltd is engaged in business of wholesale distribution of mobile, television, laptop, tablet, mobile accessory, footwear, clothing, etc, on business-to-business (B2B) basis.
In August last year, US-based retail giant Walmart Inc had acquired controlling stake in Flipkart's holding company. Under the deal, Walmart had picked up about 77 percent stake for about $16 billion, giving handsome returns to investors like SoftBank that had sold their shares.
This is a significant positive development for the company and companies in the Flipkart Group, the document noted.
Ecommerce giants Amazon and Flipkart have also been asked to disclose names of the top five sellers on their platform, price list of goods of preferred vendors, and the kind of support provided to sellers by the DPIIT, according to sources.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Evelyn Ratnakumar)
