Flipkart Internet, the unit which runs the internet platform of India's leading online retailer, clocked a 40% rise in losses to Rs 1,624 crore for the year ended March 31, 2019 a year after it managed to trim losses by 30%. This indicates that the corporate has started investing for growth under new owner Walmart.
Flipkart Internet clocked a 51% rise in operating revenues during the year as compared to FY18, according to filings obtained from the corporate affairs ministry. US retail firm Walmart bought a 77% stake in Flipkart for $16 billion in August 2018.
"The company's goal is to hunt continuous revenue growth, while minimising losses incurred on account of increased credit risk exposure. The corporate trades only with recognised and credit-worthy third-parties," said the filing.
Market place services was a key contributor to Flipkart Web's revenues which stood at Rs 1,983 crore. Logistics charges were recorded at Rs 996 crore, whereas promoting revenues doubled to Rs 576 crore, reported The Times of India.
While salaries and ESOPs in the last fiscal rose 91% to Rs 1,889 crore, advertising and promotion expenses rose 56% to Rs 1,141 crore. Flipkart Internet logged a 68% rise in net profit to Rs 377 crore.
During the announcement of deal with Flipkart, Walmart had said it sees losses of $1.5 billion for 2019 at the firm. Flipkart's parent firm which is registered in Singapore operates in India by means of numerous models. It runs core on-line retail enterprise under Flipkart Internet, and Flipkart India, which is the wholesale unit that has been used to source exclusive merchandise.