Flipkart wholesale unit revenues up marginally, losses widen 40% in FY23

Walmart’s increased interest in Flipkart was after it said the e-commerce company’s contribution margin is positive and expanding.

Flipkart India Private Limited, the wholesale business arm of the e-commerce major, saw its revenues increase by just 9.4 percent from Rs 50,993 crore in FY22 to Rs 55,824 crore in FY23, according to the company’s MCA filings shared by Tofler.

The modest growth in revenues was despite the company’s losses widening 42 percent to Rs 4,846 crore in FY23 from Rs 3,404 crore in FY22. Flipkart's wholesale unit lost more money during the fiscal because its other expenses rose during the year.

Total expenses at the Walmart-owned company increased 11.5 percent to Rs 60,859 crore in FY23, per regulatory filings. Flipkart India’s total expenses stood at Rs 54,580 crore in FY22.

While Flipkart India Pvt Ltd is an important arm of the e-commerce company since it accounts for the bulk of the company's revenues, it is different from Flipkart Internet Pvt Ltd, a key vertical. The latter provides services like payment gateway, technology, advertising and logistics management and had clocked a revenue of Rs 10,659 crore in FY22, while its net loss widened 51 percent to Rs 4,362 crore during the same year. It is yet to file its FY23 results.

The results come at a time when Walmart has been increasing its stake in Flipkart. Walmart initially bought a 77 percent stake in the e-commerce company, but its current holding has crossed 80 percent after early investors like Accel, Tiger Global and others sold their shares to Walmart and made handsome returns, Moneycontrol had reported earlier.

Walmart’s increased interest in Flipkart was after it said the e-commerce company’s contribution margin was positive and expanding.

In India, Flipkart’s wholesale business competes with Amazon Wholesale, which is significantly smaller in size. While Amazon Wholesale was yet to file its FY23 results, its revenues had jumped 47 percent year-on-year (YoY) to Rs 4,605 crore in FY22. In FY22, it reported a net loss of Rs 480 crore against a net profit of Rs 43 crore in FY21.