Flipkart's net loss widens 51% on account of rising transportation costs

Flipkart's operating loss or EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss stood at Rs 3,925 crore, which was up from Rs 2,267 crore in the previous fiscal

Flipkart Internet Pvt Ltd, reported a net loss of 51 per cent to Rs 4,362 crore in the financial year 2022, a media report said on Friday. The Walmart-owned company saw a 31 per cent year-on-year jump in its revenues to Rs 10,659 crore.

In a report published in LiveMint, Flipkart's net loss was on account of the rising transportation, marketing, and legal charges. E-commerce giant's total expenses for the fiscal were recorded at Rs 15,020 crore against Rs 10,996 crore in the previous fiscal, whereas, its operating revenue jumped to Rs 10,477 crore in FY22, compared to Rs 7,804 crore in FY21- an increase of 34 per cent. 

Flipkart's operating loss or EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss stood at Rs 3,925 crore, up from Rs 2,267 crore in 2021. The company's total expenses also rose to Rs 10, 849 crore in FY22 from Rs 7,178 crore in the previous financial year. The firm's transportation cost, however, swelled to Rs 5,045 crore from Rs 3,444 crore in FY21. 

E-commerce major's advertising promotional expenses also witnessed an 80 per cent surge in FY22 to Rs 1,946 crore from Rs 1,073 crore. Flipkart said that its revenue mainly came from operations, such as  e-commerce, information technology enabled services, marketplace and related support services which includes corporate agent services for insurances. 

In FY22, Flipkart has also ventured into new businesses. According to a report, Flipkart has now forayed into video streaming, distribution, and hosting services. It has done so by developing original content or using the content provided by other service providers. The company has also undertaken advertising and promotional activities and runs loyalty programmes too.