Flipkart’s marketplace unit clocks 32% revenue growth in FY21

Bengaluru: Two key units of Flipkart’s India business—Flipkart India, the wholesale unit, and Flipkart Internet, the marketplace arm—reported a growth of 25% and 32% in revenue from operations in FY21, according to recent regulatory filings sourced from business intelligence platform Tofler.

Flipkart Internet, which runs the online marketplace, clocked an operational revenue of Rs 7,840 crore for the period under review, but its losses increased by 49% to Rs 2,881 crore. Flipkart India meanwhile saw a 25% increase in revenue to Rs 42,941 crore in FY21, while its losses fell by 22% to Rs 2,445 crore, the filings showed.

Ecommerce major Flipkart’s parent company is registered in Singapore and it operates in India through a number of units. Its core online retail business is under Flipkart Internet, and Flipkart India is the wholesale unit, which is largely involved in buying and selling goods in bulk to and from suppliers and sellers.

Flipkart Internet generates revenue through marketplace fees, which is a combination of fees it charges from sellers for providing its platform, payment gateway services, shipping, and other services. Flipkart also has other units for payments and logistics.

The financials of the two entities mentioned above give an indication of the business growth of the online retailer, which is owned by US-based Walmart.

Flipkart’s marketplace arm generated 36% of its revenue from marketplace fees while 31% came from offering logistics services. Payment gateway services contributed 11% to the revenue while advertising and other services had a share of about 18%, the filings showed.

CEO Kaylan Krishnamurthy told ET
in a recent interview that Flipkart plans to scale verticals like grocery and hyperlocal deliveries along with its value-focused platform Shopsy.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.