Amazon rival Flipkart's loss widens to Rs 4,890.6 crore in FY 2022-23

Walmart-owned e-commerce giant Flipkart has witnessed an expansion in its consolidated loss, reaching Rs 4,890.6 crore for the financial year 2022-23. In comparison, the previous financial year (FY 2022) saw the company incurring a consolidated loss of Rs 3,371.2 crore.

Flipkart losses jump to Rs 4,839 crore 

On an individual level, the net loss for Flipkart, which is the amount carried forward to the balance sheet, escalated to Rs 4,839.3 crore. The company's financial report highlighted, "Net loss for the financial year ending as on 31st March 2023 was Rs 48,393 million as against that of the previous year ending as on 31st March 2022 of Rs 33,624 million." This indicates a 44% surge in the net loss.

Income and expenditure overview

Despite the increased loss, Flipkart's consolidated net total income, which includes other sources of income, saw a growth of 9.4%. It rose to Rs 56,012.8 crore in FY 2022-23 from Rs 51,176 crore in FY 2022.

Notably, the standalone net total income mirrored the consolidated figures. Tofler's data also pointed out that the company's total expenses for the said fiscal year amounted to Rs 60,858 crore.

Recent initiatives by Flipkart

Earlier in the month, The Walmart-owned company introduced a new subscription program named "Flipkart VIP." Priced at an annual membership fee of Rs 499 to offer customers a range of exclusive benefits, especially targeting the festive shopping season. 

The company said that subscribers to Flipkart VIP will enjoy perks such as free same or next-day deliveries, 48-hour return windows, a welcome gift box valued at Rs 499, and immediate access to a specialized customer support team.

Additionally, members can earn 5% SuperCoins on all purchases, with an extra 5% savings when using SuperCoins across the Flipkart group, which includes partners like Cleartrip, the company added.

What about Amazon?

While Amazon India's financial results are yet to become available, In the previous fiscal Amazon India reported a 30% increase in revenue at its five units, including marketplace, transportation, internet, data and payments for the year ended 31 March even as it narrowed losses by 17%.

Amazon Data Services India reported an annual profit of Rs 326.8 crore on revenues of Rs 3,567.3 crore. Amazon Seller Services, the main unit operating the Amazon India marketplace, reported a 32% increase in revenue, reaching Rs 21,633 crore, up from Rs 16,378 crore the previous year.

Notably, the marketplace reduced its losses to Rs 3,649.2 crore this year, down from Rs 4,748.1 crore in FY21. However, expenses for the unit went up by nearly 19%, totalling Rs 23,120 crore. 

The cost of delivering orders was Rs 6,751.2 crore, a slight increase from Rs 6,332 crore in FY21. Additionally, earnings from advertising services jumped to Rs 4,171.4 crore from Rs 2,554.2 crore the previous year.