Comments
Walmart’s acquisition of Flipkart seems to have worked well for the latter. The Bengaluru-based e-commerce company trimmed its losses by 63 per cent to ₹17,231 crore in FY19.
Flipkart posted ₹42,878 crore in revenue from contracts with customers, with the total revenue adding up to ₹43,615 crore, which marks an approximately 42 per cent increase in group revenue from the previous year’s ₹30,644 crore.
Overall expenses went down significantly, from ₹46,895 crore in FY18 to ₹17,281 crore in FY19, revealed documents sourced by data intelligence platform paper.vc .
However, “the massive decline in expenditure is attributable to a steep decline in finance costs rather than any overall optimisation in operating expenses,” it said.
“Finance cost comprised a large part of FY18 expenditure, largely attributed to the accounting treatment of convertible securities. If one were to exclude finance costs, overall group expenditure actually went up by 118 per cent.”
Significantly, since Walmart took over, employee benefit expenses have shot up by 58 per cent to ₹4,254 crore.
Acquisition spend
The filings also reveal that Flipkart spent $46.8 million on acquisitions in FY19. This included $21.4 million on the September 2018 acquisition of Israel-based Upstream Commerce and $10.5 million on the August 2018 acquisition of Bengaluru-based Liv AI.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.