Flipkart B2B arm narrows losses for FY20 by 17.8%

Flipkart B2B arm narrows losses for FY20 by 17.8%
Photo Credit: 123RF.com
2 Dec, 2020

Flipkart India, the wholesale arm of the Walmart-backed ecommerce entity, reported an 11.8% year-on-year increase in total income to Rs 34,610 crore for the financial year ended March 31, 2020. The company also reduced its net loss by 17.88% year-on-year to Rs 3,150.

The B2B unit is a wholesale distributor of electronics and mobile phones, laptops, mobile accessories as well as apparel and footwear, according to filings made by the company.

Earlier this year, the Competition Commission of India (CCI) instituted a fresh probe into the operations of Flipkart India along with Flipkart Internet -- the ecommerce marketplace of the group company -- based on an order by the National Company Law Appellate Tribunal (NCLAT). Filed by the now-disbanded online vendors body AIOVA, the complaint alleged preferential treatment to select sellers by Flipkart, among other charges.

In its filings, Flipkart India stated that the investigation is pending due to a civil appeal filed by the two Flipakart entities with the Supreme Court.

The company also disclosed that it had disputed income tax dues of Rs 123.7 crore dating back to 2016-17 and disputed dues under CGST of Rs 61.1 lakh and Rs 63.5 lakhs under customs duty for the period of 2018-20 and 2018-19, respectively.

Earlier this year, Flipkart Group also acquired the cash-and-carry business of Walmart in India, which was folded into Flipkart Wholesale, a procurement platform for small retailers and kiranas.