Flipkart’s delivery arm Instakart reports widening losses, lower revenue in FY24
Instakart witnessed a drop in operating revenue from logistics and warehousing services.
Flipkart’s delivery service arm Instakart's FY24 losses increased multifold to Rs 1718.4 crore, from Rs 324.6 crore in the previous year, hurt by higher expenses and marginally lower revenues.
The company, which is in the logistics, warehouse, courier and allied services business, clocked an operating revenue of Rs 12,115.3 crore in FY24, 5% lower than Rs 12,787.4 crore it posted a year ago, according to filings made with Toefler.
During the period, the company's total expenses increased 6% to Rs 14,149.4 crore, mainly driven by employee benefit and other expenses.
Logistics services accounted for the majority (about 78%) of Instakart's total operating revenues, with Rs 9,429.8 crore, marginally lower than what it collected in the previous year.
Warehousing services, which accounted for about 10% of total operating revenues, witnessed a 28.4% drop in revenue, while collection services, which accounted for 12%, remained stable.
Just a week ago, Flipkart Internet reported a 21% rise in FY24 revenue at Rs 17,907.3 crore helped by rising income from its advertising services.
Flipkart India Ltd, which is Flipkart’s business-to-business (B2B) arm, reported a 26.4% rise in revenue from operations at Rs 70,541.9 crore in FY24.
Edited by Swetha Kannan