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In new data, Flipkart sees slowing sales growth, still sells $217 million worth of stuff in 1 year

Indian’s top e-store Flipkart is still in it for the long haul, nursing financial losses whilst building its user-base and cultivating fast-soaring sales. That’s the picture from a new document filed by Flipkart with India’s Registrar of Companies. It shows that Flipkart brought in Rs 1,345 crore – $217.4 million – in sales revenue in the most recent financial year, which is 2.7-times higher than the figure (Rs 480 crore; $78.2 million) in the previous year.

The data, as spotted by TechCircle, for the financial year ended March 31, 2013, and is the newest statistic available.

Flipkart sales revenue 2013

But Flipkart’s growth is slowing. While India’s e-commerce industry is still in its nascent stages, perhaps Flipkart is closer to saturation on its current addressable market. In the fiscal year before last, Flipkart grew by a factor of 10, compared to 2.7x in the newest figures.

Still aiming at $1 billion

Still, the TechCircle crew points out, even with this rate of slowdown in revenue growth, Flipkart is still on course to hit its much-vaunted target of $1 billion in sales revenue for full-year 2015. The blog expects the next figure, based on its own calculations, to be Rs 3,000 crore, which is $485 million at current exchange rates.

Flipkart’s document shows that while the Flipkart.com site itself posted Rs 2 crore in profit ($323,260), the entire Flipkart India company saw its net loss rise by a factor of three to Rs 192 crore ($31 million) in the newest data.

The e-store is diversifying with a view to the long-term, and a lot of changes happened in 2013. First the site added a marketplace for merchants, emulating the “department store on the web” model taken by Rakuten and Alibaba’s Tmall. Then the site a launched a Paypal-esque e-payment service that those merchants could use; that e-payments platform, called Payzippy, opened to the public last week and is now in use on a number of other e-commerce sites.

Flipkart raised over $550 million in funding this year in order to sustain its losses and help it grow.

(Source: TechCircle)

(Editing by Josh Horwitz)



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