Kalyan Krishnamurthy , Flipkart group chief executive officer. Overall expenses reduced significantly from $6.6 billion in the preceding fiscal year to $2.4 billion in FY19. (Photo: Bloomberg)
Kalyan Krishnamurthy , Flipkart group chief executive officer. Overall expenses reduced significantly from $6.6 billion in the preceding fiscal year to $2.4 billion in FY19. (Photo: Bloomberg)

Flipkart’s revenue grew 42% to over $6 billion in fiscal year 2019

  • Flipkart spent $47 mn on acquisitions in FY19, including $21.4 mn on acquiring Israel’s Upstream Commerce
  • Total comprehensive income for the fiscal year 2019 was 22,883 crore, down from 47,370 crore in the last fiscal year

BENGALURU : Walmart-owned e-commerce platform Flipkart’s revenue grew 42% to over $6 billion ( 42,878 crore) in the year ending 31 March 2019, compared with 30,164 crore ($4.2 billion) in the previous fiscal year, according to the annual financial statement filed by its Singapore holding company on Thursday.

However, the company reduced its losses by 63% from $6.6 billion (about 46,900 crore) to $2.43 billion ( 17,231 crore) over the same period.

Total comprehensive income for the fiscal year 2019 was 22,883 crore, down from 47,370 crore in the last fiscal year.

Overall expenses reduced significantly from $6.6 billion (about 46,900 crore) in the preceding fiscal year to $2.4 billion ( 17,281 crore) in FY19.

While employee benefits costs increased 58% to 4,254 crore from 2,683 crore last year, finance costs fell massively to 4,282 crore from 40,937 crore last fiscal. Other expenses came in at 9,530 crore.

In August 2018, US-based retail giant Walmart acquired a 77% stake in Flipkart for $16 billion.

The latest filings reveal details relating to Flipkart’s new acquisition strategy since Kalyan Krishnamurthy took over as Flipkart group chief executive officer in January 2017.

Flipkart group spent $47 million on acquisitions in FY19, including $21.4 million on the September 2018 acquisition of Israel-based Upstream Commerce, and $10.5 million for Bengaluru-based 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.

“Many expected a dip in Flipkart’s revenue, but it hasn’t happened," he said over the telephone.

“Part of that, interestingly, is employee expenses—increase in salaries and employee base. A portion of it is also probably employee stock ownership plan (ESOP) expenditure, which has been allocated towards employee benefits."

Flipkart competes with Amazon India in the e-commerce segment in India.

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