Flipkart Internet posts four-fold rise in FY15 revenues

Flipkart Internet, which runs the consumer-facing portal of India's largest ecommerce business has reported almost four-fold rise in revenue and a 12-fold jump in net worth in fiscal 2015, indicating the unabated growth at the firm and the country's online retail sector. The company posted revenue of Rs 659 crores in the year ended March 31, 2015 compared with Rs 179 crores the previous year, according to a recent filing with the Registrar of Companies. The company had posted a loss of Rs 316 crores in fiscal 2014. Flipkart Internet is a part of Flipkart.

The company’s revenues are driven by shipping fee, selling commission and advertisements. The company charges a commission of 4 percent to 25 percent of the selling price, depending on the category of products, from vendors for using its platform. Its net-worth soared to Rs 4,819 crores from Rs 415 crores a year earlier. The filing also showed that the company raised nearly Rs 5,500 crores from its Singapore-based parent, Flipkart Marketplaces, during the year.

While Flipkart Internet runs the website, its wholesale arm books actual sales of goods it gets from vendors. For this business, Flipkart India reported sales of Rs 2,846 crores in fiscal 2014. There are a few other companies such as Flipkart Logistics, which runs the payment gateway for transactions done on Flipkart.com, and dormant companies Flipkart Digital and Flipkart Online. All these businesses are owned by Singapore-based Flipkart, which has three other subsidiaries registered in Singapore: Flipkart Payment, Flipkart Logistics and Flipkart Marketplaces.