This marks the second consecutive year in which Flipkart has achieved over 20% growth while reducing losses. In contrast, Amazon’s growth in India has declined significantly over the last two financial years from the highs of FY21, when it recorded 49% growth in operating revenue. Amazon Seller Services, which operates Amazon’s India marketplace, has yet to file its FY24 financials with the Registrar of Companies (RoC). In FY23, Amazon’s revenue grew by just 3% to Rs 22,198 crore, while losses saw a marginal decline to Rs 4,543 crore.
Walmart-owned Flipkart operates its India business through multiple entities, with Flipkart Internet being the entity responsible for running the marketplace. This entity earns revenue primarily through seller commissions, advertising income, and other fees for seller services.
In FY24, Flipkart Internet generated nearly Rs 5,000 crore from advertising—a significant revenue source for large marketplaces in India. In FY23, Flipkart Internet’s advertising income was Rs 3,324.7 crore.
Its marketplace fee income for FY24 stood at Rs 3,734.2 crore, nearly flat compared to Rs 3,713.2 crore the previous year. Similarly, its income from collection services rose to Rs 1,225.8 crore in FY24, up from Rs 1,114.3 crore.
Flipkart’s growth, along with a 40% reduction in losses, comes at a time when the ecommerce industry is experiencing significant changes. Flipkart Group CEO Kalyan Krishnamurthy has reiterated an internal focus on profitability, accompanied by significant organizational restructuring that has contributed to lower operating costs.
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Additionally, Flipkart has ventured into the quick commerce market with its “Minutes” service to meet the growing demand for rapid delivery, as competitors like Blinkit, Zepto, and Swiggy Instamart ramp up their offerings, promising deliveries within 10-20 minutes for groceries, electronics, and other items.Meanwhile, Amazon India has seen a change in its leadership, with former country head Manish Tiwary leaving to join Nestlé. Amazon veteran Samir Kumar has taken on the role of country manager for India, succeeding Tiwary. Kumar, who joined Amazon in 1999, was among the key executives involved in setting up the US ecommerce giant’s operations in India in 2013, working closely with Amit Agarwal, who was then India head and is currently senior vice president for emerging markets at Amazon.
As the quick commerce market intensifies, Amazon has set a target of the first quarter of 2025 to launch in the segment in India, according to a report by ET on August 28.