Flipkart has reported a consolidated revenue of USD 6 billion for the financial year ended March 31, a 42% increase compared to last year.
The Walmart-owned online retailer’s losses came down by 63% from USD 6.6 billion to USD 2.43 billion over the same period.
"Growth has slowed down from 50% to 42%. While it is still a very healthy growth, losses remain a key cause of concern. Excluding financial cost, which was unusually high last year (FY 2018) due to fair value loss on derivative financial instruments, losses have more than doubled in fiscal year 2019,” Economic Times quoted Satish Meena, senior analyst at Forrester Research, as saying.
Singapore-based Flipkart Ltd group comprises of Flipkart, Myntra and Jabong, PhonePe and Flipkart Logistics.
The employee benefit expenses of Flipkart have escalated by 58% to USD 600 million since Walmart took over the company.
Chee Kheong Mah, director of the Monetary Authority of Singapore and chairman of The International Chamber of Commerce, and Rohit Bhagat, former executive at asset manager BlackRock, joined Flipkart’s board this year.
The group spent USD 46.8 million on acquisitions during the year, including USD 21.4 million for Israel-based Upstream Commerce and USD 10.5 million for Liv.ai.
“The massive decline in expenditure is attributable to a steep decline in finance costs rather than any overall optimization in operating expenses. Finance cost comprised a large part of FY18 expenditure, largely attributed to accounting treatment of convertible securities. If one were to exclude finance costs, overall group expenditure actually went up by 118%," Vivek Durai, founder of data provider Paper.vc, said in the statement.