Flipkart Reports ₹5,189 Crore Loss in FY25

Walmart-owned e-commerce giant Flipkart India has reported a widening net loss of ₹5,189 crore in the financial year 2024-25 (FY25). Despite recording a strong 17% year-on-year (YoY) revenue growth, rising expenses and increased losses from associate companies weighed heavily on the company’s overall performance.

Revenue and Losses in FY25

According to financial statements sourced from Tofler, Flipkart India’s revenue from operations increased 17% YoY to ₹82,787 crore, reflecting strong consumer demand and marketplace activity.
However, total expenses rose in tandem to ₹88,121 crore, leading to a net loss of ₹5,189 crore, up 24% from ₹4,159 crore in FY24.

Rising Losses from Associate Companies

Flipkart’s losses were also impacted by its investments in associate companies. The share of loss from six associate firms and one joint venture rose to ₹172 crore in FY25, compared to just ₹54 crore in the previous year.
This indicates that Flipkart’s broader ecosystem investments are yet to turn profitable, even though they contribute to the company’s long-term expansion strategy.

Expense Breakdown and Cost Controls

A deeper look at the financials highlights varied expense patterns:

• Material costs, finance costs, and other operating expenses increased compared to FY24.

• Employee-related costs declined 31% YoY to ₹469.8 crore, reflecting cost-cutting measures, including job reductions.

In fact, Flipkart reportedly laid off nearly 1,000 employees (about 5% of its workforce) in early 2024 as part of its annual performance review.

Flipkart Internet Shows Narrower Losses

Separately, Flipkart Internet Pvt. Ltd., the marketplace arm of the company, reported improved financial performance in FY25.

• Net loss narrowed to ₹1,494.2 crore compared to ₹2,358.7 crore in FY24.

• Revenue from operations grew 14% YoY to ₹20,493.3 crore.

This suggests that while the overall business faces challenges, Flipkart’s marketplace operations are moving towards profitability.

Marketplace Growth and Service Expansion

Flipkart operates multiple entities in India, with its marketplace arm driving key revenue streams such as seller commissions, advertising, storage, and logistics services.

Highlights of FY25 marketplace performance include:

• Marketplace services revenue more than doubled to ₹7,750.6 crore.

• Advertising services grew 27% YoY to ₹6,317 crore.

• Storage services surged 55% to ₹268.2 crore.

• Logistics revenue fell sharply to ₹4,224.5 crore from ₹6,837.6 crore in FY24.

While marketplace and advertising revenue showed strong growth, the drop in logistics income reflects operational challenges.

Fresh Funding Support from Parent Entity

To maintain growth momentum, Flipkart Internet raised ₹2,225 crore from its Singapore-based parent company in FY25.
This came just two months after a previous ₹3,200 crore capital infusion, underlining Walmart’s continued confidence in Flipkart’s expansion in India.

The fresh funding will support:

• Technology upgrades

• Logistics and supply chain efficiency

• Market competitiveness ahead of Flipkart’s planned IPO

Outlook Ahead of IPO Plans

Despite widened losses, Flipkart’s revenue growth and marketplace performance highlight the platform’s resilient demand base in India’s booming e-commerce sector. With Walmart’s continued backing and a strong push in marketplace and advertising services, Flipkart is expected to remain a leading player in the run-up to its anticipated public listing.

Conclusion

Flipkart India’s FY25 financial results reflect a mixed picture: while revenue growth and marketplace expansion remain strong, rising expenses and associate losses continue to drag profitability. However, the narrowing losses at Flipkart Internet and fresh funding infusions suggest a focused strategy to strengthen operations and gear up for long-term growth.