The company that runs the online marketplace, Flipkart Internet Pvt. Ltd., saw a 31% increase in income from the previous year to Rs 10,659 crore for the fiscal year 2022. The Walmart-owned company’s net loss did, however, increase by 51% to Rs 4,362 crore during the fiscal year as a result of growing marketing, legal, and transportation costs.
According to statistics received by business intelligence platform Tofler, Flipkart’s operating revenue increased to Rs 10,477 crore in the financial year 2022 from Rs 7,804 crore in the financial year 2022.
Comparatively, Amazon India, a major competitor of Flipkart, reported a 32.5% yearly growth in its sales for its marketplace component, Amazon Seller Services, to Rs 21,462 crore. Additionally, the corporation reduced its losses in the financial year 2022 by 23% to Rs 3,649 crore.
According to the documents, Flipkart Internet generated income from logistics management services worth Rs 3,848 crore, advertising services worth Rs 2,084 crore, computer development services worth Rs 2,824 crore, and payment gateway and related services worth Rs 1,178 crore in the financial year 2022.
Earlier this week, Walmart said it is also considering raising $2 to $3 billion for its subsidiary Flipkart at a valuation of more than $40 billion in order to expand in India. Flipkart raised around $3.6 billion in July of last year. Of this wealth, it’s thought that between $700 and $800 million is still available.
Following its involvement in unlawful lobbying in India, Walmart had abandoned its ambitious goal to expand stores all throughout the country in favour of e-commerce plans based on Flipkart. The company now attributes the losses, which are increasing nearly in lockstep with revenues, to costs associated with shipping, ads, and promotional activities. Indian markets have proven challenging for both major brands due to increased competition during the post-covid recovery.
Also, Ikea India’s financial year 2022 sales increased by 77% but its net loss increased by 12%, according to documents submitted to the Registrar of Companies and obtained through the business intelligence portal Tofler. The Indian branch of furniture giant Ikea reported a net loss of Rs 902.8 crore in the financial year 2022. According to financial information received by business intelligence platform Tofler, the net loss increased this year compared to Rs 809.8 crore the year before.
IKEA, a global retailer of home furnishings with more than 300 locations, dominated the furniture market at the beginning of the twenty-first century. IKEA is known for its low-cost products, which are almost always offered in convenient “flat-pack” packaging for consumer assembly at home. Although its headquarters are now in the Netherlands, IKEA was founded in Sweden in 1943 and still proudly displays its Swedish heritage. Store exteriors are painted in the blue and yellow of the Swedish flag, in-store restaurants serve Swedish cuisine, and the company’s goods have Swedish names.
Ikea India Pvt Ltd’s operating net sales/revenue increased by 77.07% to Rs 1,076.1 crore in the financial year 2022. During the fiscal year that ended in March 2021, it was Rs 6077 crore.
Meanwhile, Myntra Design, a Walmart subsidiary that owns the online apparel store Myntra, reported a 45% increase in operating revenue to Rs 3,501 crore while seeing a 40% increase in losses to Rs 597 crore in the financial year 2022. Myntra Design makes money by charging brands and sellers on the marketplace commission and service fees.
Marketplace service revenue climbed 18% to Rs 1,610 crore, logistics service revenue virtually doubled to Rs 1,498 crore, and advertising revenue increased 76% to Rs 344 crore.
On September 13, Amazon Seller Services, the company that manages the Amazon India marketplace, announced a 32% increase in total sales to Rs 21,633 crore for the fiscal year 22.
Additionally, the regional branch of Seattle-based Amazon reduced losses by about 23% to Rs 3,649 crore in the financial year 2022.
