Flipkart Internet cuts losses at Rs 1,638.6 cr in FY17
E-commerce major Flipkart Internet has seen its losses narrow to Rs 1,638.6 crore in 2016-17, as per a regulatory documents. It had a net loss of Rs 2,306.5 crore in the previous financial year, 2015-16.
E-commerce major Flipkart Internet has seen its losses narrow to Rs 1,638.6 crore in 2016-17, as per a regulatory documents. It had a net loss of Rs 2,306.5 crore in the previous financial year, 2015-16. The company attributed the narrowing of the net loss to lower logistics, storage services and collection charges as well as decline in other expenses, as per documents filed with the Corporate Affairs Ministry.
The documents, sourced through market intelligence firm Tofler, showed that the total income of Flipkart Internet had increased by 15.46 per cent to Rs 2,253.5 crore in the year ended March 2017 from Rs 1,951.7 crore in the previous financial year. Flipkart did not respond to an emailed query.
It runs its e-commerce business through Flipkart Internet, while the holding company is registered in Singapore.
The company has been in the limelight for inking a blockbuster deal with Walmart under which the American retailer will pick up about 77 per cent stake for about USD 16 billion.
The deal has also given handsome returns to investors like SoftBank, Naspers, Accel Partners and eBay, who have agreed to sell their shares. The transaction is now awaiting approval from the Competition Commission of India (CCI).
Flipkart, which operates different entities for various functions, provides e-commerce and support services through Flipkart Internet. The revenue of Flipkart Internet is mainly generated from services like collection, marketplace, storage and logistics.
According to the documents, Flipkart Internet's total revenue from operations was at Rs 1,882.4 crore with other income bringing in an additional Rs 371.1 crore.
"Their biggest expenses are spread across people (Rs 1,030 crore), advertising (Rs 720 crore), storage and logistics (Rs 590 crore). Advertising expenses dipped by over 20 per cent, indicating a growing focus towards bringing costs under control," Tofler co-founder Anchal Agarwal said.
But with the Walmart acquisition, the spending war could heat up again, she added.
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