Flipkart Internet, which runs the online portal of the rather complicated company structure which Flipkart has, has posted a revenue of 659 crores in the year ending March 31, thus registering a massive four times of the 179 crore revenue posted last year.
This was revealed in a recent filing by the company with the Registrar of Companies (via ET).
The filing also showed the net worth of the company jumping 12 times from Rs 415 crore last year to Rs 4819 crores, signalling towards a better financial health. It had posted a loss of Rs 316 crores in fiscal 2014.
Flipkart Internet is held by Singapore-based Flipkart under which there are three other registered subsidiaries, namely Flipkart Payment, Flipkart Logistics, and Flipkart Marketplaces. Flipkart Marketplaces is the parent company of Flipkart Internet and Flipkart Internet is the one which had raised a sum of Rs 5,500 crores from Flipkart Marketplaces during the year. So yeah, that is one hell of a structure Flipkart has.
Flipkart Internet is charging a commission of 4% to 25% of the selling price, depending on the category of products, from vendors for using its platform. The wholesale arm of Flipkart, which books actual sales of goods from vendors, Flipkart India had posted sales of Rs 2,846 crore in fiscal 2014.
It is noteworthy that the concept of an online marketplace through a platform like Flipkart Internet is the only segment of online multi-brand retail where India allows foreign investment and which has allowed the company to raise foreign funds by staying within the regulations.
This should be one of the important companies for Flipkart as it (Flipkart Internet) derives its business out of a marketplace model, which the law currently allows,
says Devangshu Dutta, chief executive at retail consultancy Third Eyesight.
He also added that the bigger challenge for the company would be to bear the complete onus of the transactions rather just a company with less control of the business.