Flipkart logistics arm eKart grow FY19 revenues 78%; costs up 56%
Instakart Services, Walmart-owned Flipkart’s logistics arm which operates under the brand eKart, reported a 78% growth in revenues for the financial year ended March 31, 2019. Revenues grew to Rs 4,422 crore led by higher logistics and warehousing income.
Losses narrowed to Rs 293 crore from Rs 500 crore in the previous financial year.
The company’s costs increased 56% to Rs 4,850 crore chiefly on account of 47% increase in transportation costs. It also spent more on outsourced contracts -- Rs 1,129 crore against Rs 661 crore in the previous year. Employee costs rose 45% to Rs 523 crore because of higher salary payments.
The logistics services, which primarily involve managing deliveries for Flipkart, Myntra and Jabong, accounted for more than 88% of the company’s overall revenues. While logistics services for Flipkart generated Rs 1,631 crore in revenues, Rs 98 cr came from Myntra and Rs 69 crore from Jabong.
eKart also makes inter-corporate loans available to Flipkart group companies. Loans to Flipkart Internet in FY19 stood at Rs 2,792 crore against Rs 1,932 crore in the previous year. In October, Flipkart Internet, the entity that operates Flipkart’s retail marketplace, reported a 57% increase in FY19 revenues to Rs 4,809 crore even as it widened net losses to Rs 1,624 crore.
Separately, SoftBank-backed logistics company Delhivery reported a 56% increase in revenues to Rs 1,694 crore in FY19 even as its expenses shot up 46% to Rs 3,463 crore.