Walmart owned Flipkart has reported a 50 percent growth in its revenue even as its losses increased five fold to Rs. 46,895 crore for the year ending March 2018.
According to data intelligence platform Paper.vc, Flipkart earned Rs.30,164 crore in revenue for FY 2018 and has also multiplied its losses reaching Rs.46,895 crore. The increase in losses incurred was the result of major expense due to finance costs, mostly under “fair value loss on derivative financial instruments”, which increased to Rs.40,937 crore in FY18 from Rs.4,309 in FY17.
“It (finance costs) is not an actual loss. For instance, they have not sold the shares and they continue to hold that. But in terms of real marked-to-market, the actual value has gone down due to certain actions, which resulted in this loss. For that, they have to account the same and downgraded the valuation.”- Ajay Agarwal, Co-Founder, Triage Advisors
These financials are the last results of Flipkart Group as an independent company, and post this the firm was acquired by US-based retail giant Walmart in August 2018.
Major areas where the Flipkart Group increased spending include employee costs, advertising expenses and logistics costs after it had got funding during the year from the likes of Japan’s SoftBank and China’s Tencent.