Krishnamurthy also spoke about Flipkart testing its own offering on UPI (Unified Payments Interface) with a closed user group. This will pave the way for the ecommerce firm to enter the payments business after it separated from group company PhonePe.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIT Delhi | IITD Certificate Programme in Data Science & Machine Learning | Visit |
| MIT | MIT Technology Leadership and Innovation | Visit |
| IIM Lucknow | IIML Executive Programme in FinTech, Banking & Applied Risk Management | Visit |
Without putting out a specific timeline for the launch, Krishnamurthy said the service will likely go live soon. Sources said it is likely to happen by early February.
As reported by ET, the Flipkart group chief confirmed the fast-paced growth in its travel business Cleartrip, saying it has become the second largest player in the market.
Krishnamurthy clarified there are no IPO plans for 2024, and that Flipkart continues to optimise resources.
On January 8, ET first wrote about Flipkart trimming its team size by 7% — amounting to about 1,500 job cuts. The restructuring process is currently underway and is expected to be complete by March-April.
Discover the stories of your interest
“Krishnamurthy has discussed with senior leaders that profitability is likely this year but there was no timeline given. Even with the new fundraise in progress, he has mandated lower cash burn across businesses,” one of the persons present in the town hall said. Cleartrip — in which Adani Group holds 20% — has hit about $1.5-1.7 billion in gross merchandise value, or GMV, and is expected to be one of the key areas for Flipkart, ET had reported citing sources.A spokesperson for Flipkart declined to comment on the town hall.
With today’s town hall, it’s clear the company will invest in growth areas but profitability has to be maintained.
Walmart executives have said on earnings calls that the Indian etailer has been expanding its positive contribution margin on a quarterly basis. A positive contribution margin means the product being sold at a certain price is able to make contributions or generate money after deduction of fixed costs at the firm.
Also read | Flipkart head of new biz Adarsh Menon quits, group CEO Krishnamurthy rejigs team
Flipkart Internet, which runs the marketplace, reported a 42% growth in operating revenue for FY23 to Rs 14,845 crore while its total loss narrowed 9% to Rs 4,026 crore, according to regulatory filings.
Flipkart has already received $600 million from parent Walmart, which owns an 80.5% stake in the firm after it bought out stakes from founder Binny Bansal, investors like Tiger Global and Accel. The firm is in talks with other investors to raise another $400 million to take the round size to $1 billion.
Krishnamurthy also said grocery will continue to be in focus and will have the group’s backing. It grew by 50% over the last one year.
Flipkart is venturing into the fintech space through Super.money, a platform set up by senior executive Prakash Sikaria, where the etailer currently holds a majority stake and has invested $15-20 million.
Smartphones, large appliances and fashion continue to be the core of Flipkart’s business in India, but Krishnamurthy has focused on scaling new businesses from 2022, in a bid to widen its total user base as well as diversify its offerings.