Flipkart Internet trims losses by a third in FY17

BENGALURU: In a sector that has been heavily criticised for cash burn and mounting losses, online retailer Flipkart is attempting to be an outlier.

Flipkart Internet, the marketplace entity of the ecommerce company, narrowed its FY17 losses by almost a third to Rs 1,639 crore from Rs 2,305 crore during FY16, according to its financials with the Ministry of Corporate Affairs, sourced from Tofler. Flipkart Internet has also managed to increase operating revenues while trimming expenses. The company clocked operational revenues of Rs 1,882 crore in FY17, 15% higher than its revenue of Rs 1,635 crore in FY16. Overall expenses witnessed an 8% drop to Rs 3,892 crore in FY17 from Rs 4,257 crore during the last fiscal.

Majority of the costs fell under the categories of employee benefit and other expenses at Rs 1,032 crore and Rs 2,508 crore, respectively. The narrowing of losses changes the trend of Flipkart.


The company had more than doubled its losses from FY15 to FY16. However, as a funding winter hit the Indian startups ecosystem during this period, the firm took control of its profit and loss statement. Flipkart group company, registered in Singapore, showcased heightened control on expenses during FY17 and seems like the firm will continue to do so. “Our profit and loss statement is lean and disciplined,” Flipkart CEO Kalyan Krishnamurthy had told ET. “We feel that to that extent we are very secure — burn requirements are low.”

However, this may change as Walmart recently announced its $16 billion investment for a 77% stake in Flipkart, giving the online retailer access to more cash and a larger opportunity.