Flipkart's marketplace arm records ₹20,500cr revenue in FY25
What's the story
Flipkart Internet, the marketplace division of Flipkart, has reported a 14% year-on-year (YoY) increase in revenue for fiscal year 2025. The company posted revenues of ₹20,493 crore during this period. However, the growth rate is lower than the 21% jump it witnessed in fiscal 2024 and comes amid a general slowdown in e-commerce sentiment during the year ending March 2025.
Loss reduction
Net losses reduced by 37%
Along with the revenue growth, Flipkart Internet has also managed to reduce its net losses by a whopping 37%. The company's net losses for FY25 stood at ₹1,494 crore. This is a significant improvement from the previous fiscal year and indicates that despite the slowdown in revenue growth, the company is making strides toward profitability.
Revenue breakdown
Significant growth in advertising and marketplace fee income
Flipkart Internet earns its revenue mainly through seller commissions, advertising income, and other fees for seller services. In FY25, the company earned ₹6,317 crore from advertising revenue, a 27% increase from the previous year's ₹4,973 crore. The marketplace fee income also saw a significant jump in FY25 to ₹7,751 crore from ₹3,734 crore in FY24.
Financial overview
Logistics revenue declined
Flipkart Internet's revenue from logistics services fell to ₹4,224 crore in FY25, down from ₹6,838 crore in the previous fiscal year. The company's total expenses for FY25 rose only 8% YoY to ₹22,311 crore. This is a relatively modest increase considering the company's growth in revenue and indicates that it is managing its costs effectively amid changing market conditions.
Employee costs
Employee benefit expenses fell
Flipkart Internet's biggest cost head, employee benefit expenses, fell to ₹4,748 crore in FY25 from ₹5,178 crore in the previous fiscal year. In July this year, Flipkart announced a $50 million employee stock buyback program. The initiative provided liquidity to around 7,000-7,500 staff members and allowed employees to sell up to 5% of their options vested over the last three years.