Flipkart’s marketplace business revenue grows 21% to Rs 17,907 crore in FY24, Is it profitable now?

Flipkart Internet, the marketplace branch of Walmart-owned Flipkart, reported a significant 21% growth in revenue for the fiscal year 2023-24, reaching Rs 17,907 crore, up from Rs 14,825 crore in the previous year.

In addition to this revenue boost, the company managed to cut its losses by 41%, reducing them from Rs 4,028 crore to Rs 2,358 crore.

Key revenue streams and shifts

The company generated revenue primarily through seller commissions, advertising income, and fees for various seller services.

Notably, Flipkart Internet’s advertising revenue surged to nearly Rs 5,000 crore, a jump from Rs 3,324.7 crore in FY23, indicating the company’s investment in building its ad business is paying off.

In terms of marketplace fees, the revenue remained relatively steady at Rs 3,734.2 crore, only slightly up from Rs 3,713.2 crore the previous year.

Revenue from collection services, which includes fees related to payment processing and cash-on-delivery, also rose to Rs 1,225.8 crore from Rs 1,114.3 crore.

Cost management and expense breakdown

In its effort to improve profitability, Flipkart Internet implemented cost-control strategies across various operational areas.

The company reported logistics services expenses of Rs 6,230.6 crore, along with storage costs of nearly Rs 112 crore.

Employee benefit expenses were one of the largest cost categories, amounting to Rs 5,177 crore, an increase from Rs 4,482 crore in FY23.

These structured cost controls have contributed significantly to the reduction in losses.

Expansion in quick commerce

To address the rising demand for rapid deliveries, Flipkart recently ventured into the quick commerce sector with its “Flipkart Minutes” service.

Flipkart Minutes is a quick commerce service that offers deliveries of groceries, electronics, smartphones, and other products in the time ranging from 10-16 minutes. 

The service was launched after Flipkart reportedly dropped its plan to acquire a significant stake in Aadit Palicha-led Zepto.

In April, ET had reported that Zepto chose to seek a financial round rather than a strategic sale, focusing on a valuation increase and preparing for an initial public offering (IPO).