Flipkart Internet Reports Growth and Improvement in FY25

Flipkart Internet, the B2B division of Walmart, has experienced a notable 14% increase in revenue, surpassing the Rs 20,000 crore milestone for the fiscal year concluded in March 2025. Based in Bengaluru, the company also managed to decrease its losses by 37%, bringing them below Rs 1,500 crore during the same timeframe.

Significant Revenue Growth

According to its consolidated financial reports submitted to the Registrar of Companies (RoC), Flipkart Internet’s operational revenue rose to Rs 20,493 crore in FY25 from Rs 17,907 crore in FY24. This revenue surge is attributed to its diverse services, including marketplace, logistics, and advertising.

Marketplace and Advertising Revenue

The income from marketplace services saw a substantial increase, more than doubling to Rs 7,751 crore in FY25 from Rs 3,734 crore in FY24, representing 38% of operating revenue. Additionally, revenue generated from advertising grew by 27% to Rs 6,317 crore, accounting for 31% of the overall revenue.

Logistics Revenue Decline

Conversely, income from logistics services experienced a decline of 38%, dropping to Rs 4,224 crore and resulting in a reduced revenue share of 21%. Moreover, the company recorded an extra Rs 314 crore from non-operational sources, elevating its total revenue to Rs 20,807 crore for the last fiscal year.

Cost Structure Analysis

On the expenses front, logistics service charges remained the most significant cost, which increased by 9% to Rs 7,144 crore, accounting for 32% of total expenses. Employee benefits costs were reduced by 8% to Rs 4,748 crore, whereas marketing expenses surged by 37% to Rs 4,100 crore, constituting 18% of total costs.

Overall Expense Growth

Collection charges reached Rs 2,693 crore, making up 12.1% of expenses, with legal and professional fees at Rs 1,394 crore. Overall, Flipkart Internet’s total expenses escalated by 8%, reaching Rs 22,311 crore in FY25 compared to Rs 20,627 crore in FY24.

Improvement in Losses

Flipkart Internet succeeded in reducing its losses by 37%, amounting to Rs 1,494 crore in FY25, down from Rs 2,359 crore in FY24. Its EBITDA losses also improved to Rs 1,078 crore in FY25 from Rs 1,869 crore in FY24, with the EBITDA margin enhancing from -10.25% to -5.18%.

Operational Efficiency

Per unit, Flipkart invested Rs 1.09 to generate a rupee in FY25, demonstrating improvement compared to Rs 1.15 in FY24. The current assets of the company were reported at Rs 11,952 crore, while cash and bank balances grew to Rs 187 crore.

Outlook for Future Growth

With negative margins below 6%, the firm is not facing significant challenges, especially given potential cost reductions in advertising, legal aspects, and logistics. Although some of these costs may appear to resemble transfer payments to affiliated entities, the company’s path towards a $3 billion gross revenue target this financial year, alongside parent company Walmart’s prospects, appears promising due to anticipated trade agreements, reforms, and improved business conditions.