Walmart-backed e-commerce giant Flipkart is letting go of approximately 250–300 employees across various business functions, representing around 1.5% of its 20,000-strong workforce. Company representatives confirmed that such exits are part of routine performance reviews, which also include mid-year check-ins. Similar performance-based layoffs have occurred previously, including a major round in January 2024, when about 1,000 employees (5% of the workforce) were affected.
Preparing for a Domestic IPO
Flipkart is reportedly moving closer to a long-awaited initial public offering (IPO) in India. Last December, the National Company Law Tribunal (NCLT) approved the company’s proposal to shift its legal domicile from Singapore to India, clearing a key regulatory step for a domestic listing. The company is now seeking further clearance under Press Note 3 norms, as Tencent continues to hold roughly 5% of Flipkart’s stake.
Financial Performance Amid Slowing E-Commerce Growth
As India’s e-commerce growth moderates, Flipkart has focused on reducing losses while maintaining top-line growth. In FY25, Flipkart Internet—the firm’s core marketplace business—reported a 14% year-on-year revenue increase to ₹20,493 crore, while cutting losses by 37% to ₹1,494 crore. In FY24, revenue had risen by 26%.
Simplifying Operations Through Entity Consolidation
Following the NCLT approval, Flipkart is consolidating eight overseas entities into its Bengaluru-headquartered firm, streamlining its previously complex foreign holding structure. This is expected to simplify operations and support its upcoming domestic IPO.
Adjusting Fees to Remain Competitive
Flipkart generates marketplace revenue primarily through seller commissions, advertising, and other fees. To stay competitive against rivals like Amazon India and Meesho, the company recently introduced a zero-commission model for products priced below ₹1,000. Commission rates vary by category and are calculated as a percentage of the final selling price.
Expanding Quick Commerce with Flipkart Minutes
The company is heavily investing in Flipkart Minutes, its rapid-delivery venture. As of December, Flipkart operates micro-fulfillment centers (dark stores) covering roughly 3,000 pincodes across 32 cities. Plans are underway to expand this network to 1,000 dark stores and reach 75–80 cities by March–April, further strengthening its quick commerce footprint.
