 "Flipkart")
Soon after the record footfall at Flipkart’s flagship sale event Big Billion Days, the data on the ecommerce firm's growing losses is drawing attention. Flipkart India reported a 45 per cent increase in net loss at Rs 4,890.6 crore during 2022-23, against Rs 3,371.2 crore in the previous financial year, according to the data accessed by business intelligence platform Tofler.
The Walmart-owned company’s consolidated revenues for 2022-23 were at Rs 56,013 crore, a 9 per cent jump over the previous financial year.
The firm’s expenses for the financial year were reported at Rs 60,858 crore, an increase of 11.5 per cent from Rs 54,580 crore in the previous one. This included costs such as the purchase of stock in trade, employee-benefit expenses, and those related to finance.
The company reported various portfolio investments in FY23. These include firms such as Kalyr Retail (22 per cent acquisition), Fonte Fashions (19 per cent acquisition), and Logisticsnow. Other such investments include Neuropixel.AI Labs, Health Arx Technologies, and Meradawai. About Rs 169 crore was spent on these.
The statutory dues, though not deposited, on account of any dispute with different forums such as the high court and commissioner of income tax are about Rs 605 crore.
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There were 1.4 billion customer visits, a record, during its flagship festival sales event, The Big Billion Days (TBBD) 2023.
The event, which started on October 8 (with early access for VIP and Plus customers from October 7) and ended on October 15, “received a great response from both customers and the extensive network of sellers across the country”, said Kalyan Krishnamurthy, chief executive officer of Flipkart Group.
Choices in smartphones, laptops, tablets, and home appliances indicated a strong premiumisation trend across India this year.
Televisions, audio devices, smartphones, and grooming products were also among the leading choices. According to Flipkart executives, deliveries were made to remote places, such as the Andamans, Hayuliang (Arunachal Pradesh), Choglamsar (Ladakh), Kutch (Gujarat), and Longewala (Rajasthan).
Flipkart’s kirana partners delivered over 4 million packages in the first four days of TBBD 2023.
The first week of the 2023 festival season sale, which concluded on October 15, saw online platforms clocking a GMV (gross merchandise value) of about Rs 47,000 crore, growing at 19 per cent over the first week of the 2022 festival season sales, according to the latest report by Redseer Strategy Consultants.
The firm said high ASP (average selling price) categories steered the first week to a robust 19 per cent year-on-year growth rate.
According to Redseer’s latest estimates, Flipkart Group (consisting of Flipkart, Myntra, and Shopsy) continues to assert its leadership in the first week of the 2023 festival season sales.
Redseer said Flipkart Group further gained market share over last year’s sales to reach 63 per cent in GMV while also remaining the leader in volume terms. This was followed by Amazon.
In volumes, Meesho retained second position, notably gaining market share in the first week of the 2023 festival season sales, with the share increasing to 25 per cent of the orders, up from 21 per cent in the first week of the 2022 festival season sales.
Meanwhile, Walmart India, which owns and operates 28 B2B (business to business) modern wholesale stores under the brand name of “Best Price”, reported its revenues for 2022-23 at Rs 5,006 crore, a 7 per cent fall since the previous financial year, according to Tofler.
