Flipkart Internet, the unit that manages the online platform, has announced a 40% increase in its losses, which amounted to 1,624 million rupees for the year ended March 31, 2019, after being able to reduce them by almost 30% in the previous financial year. This means that the company has begun investing for expansion under the new owner, Walmart.
The unit's revenue increased by 51 percent to Rs 4,234 crore during the year compared with the previous year, according to information from the Ministry of General Affairs. The US retail giant, Walmart, acquired 77% of Flipkart's capital for $ 16 billion in August 2018.
After that, the two co-founders of the Indian giant e-tails - Sachin and Binny Bansal - have left their operating duties. Flipkart's costs have mostly increased in personnel costs, which have almost doubled, even though advertising and marketing expenses have increased in addition to legal costs.
"The company's goal is to pursue continued revenue growth while minimizing losses incurred as a result of increased exposure to credit risk. The company trades only with recognized and solvent third parties, "says the document.
The services of the marketplace - commissions it charges the sellers - amounted to 1,983 crores of rupees. Logistics costs amounted to 996 million rupees while advertising revenue doubled to 576 billion rupees.
Wage costs, including wages and ESOP, increased by 91 percent to 1,889 crores of rupees, while advertising and promotional expenses increased by 56 percent to 1,141 crore. Legal fees rose 68 percent to 377 million rupees.
In the announcement of the Flipkart case, Walmart said it expected losses of $ 1.5 billion in 2019 for the company. Flipkart's parent company is registered in Singapore and operates in India through several units. Its main online retail business is Flipkart Internet and Flipkart India, the wholesale unit that has been used to purchase exclusive merchandise.
It has other payment units, logistics and recently set up Flipkart FarmerMart for its foray into retail food products.
The unit's revenue increased by 51 percent to Rs 4,234 crore during the year compared with the previous year, according to information from the Ministry of General Affairs. The US retail giant, Walmart, acquired 77% of Flipkart's capital for $ 16 billion in August 2018.
After that, the two co-founders of the Indian giant e-tails - Sachin and Binny Bansal - have left their operating duties. Flipkart's costs have mostly increased in personnel costs, which have almost doubled, even though advertising and marketing expenses have increased in addition to legal costs.
"The company's goal is to pursue continued revenue growth while minimizing losses incurred as a result of increased exposure to credit risk. The company trades only with recognized and solvent third parties, "says the document.
The services of the marketplace - commissions it charges the sellers - amounted to 1,983 crores of rupees. Logistics costs amounted to 996 million rupees while advertising revenue doubled to 576 billion rupees.
Wage costs, including wages and ESOP, increased by 91 percent to 1,889 crores of rupees, while advertising and promotional expenses increased by 56 percent to 1,141 crore. Legal fees rose 68 percent to 377 million rupees.
In the announcement of the Flipkart case, Walmart said it expected losses of $ 1.5 billion in 2019 for the company. Flipkart's parent company is registered in Singapore and operates in India through several units. Its main online retail business is Flipkart Internet and Flipkart India, the wholesale unit that has been used to purchase exclusive merchandise.
It has other payment units, logistics and recently set up Flipkart FarmerMart for its foray into retail food products.
No comments:
Post a Comment