Flipkart’s Ekart Achieves Profitability: 10x Revenue Growth, 50x Customer Rise, Targets 12x EBITDA

Flipkart’s logistics arm Ekart has transitioned from an internal supply chain unit to a profitable, cash-generating logistics powerhouse. With rapid expansion and a growing external client base, the company is now positioned as a major player in India’s evolving logistics landscape.

Flipkart’s Logistics Arm Ekart Financial Turnaround

Ekart has achieved profitability for the first time, marking a key milestone in its operational journey. Chief Business Officer Mani Bhushan told Financial Express, the firm is now generating cash and expects approximately 12x growth in EBITDA this year compared with the previous year. However, specific figures regarding profitability were not disclosed.

10X Revenue Growth and 50x Surge in Customer 

Ekart has experienced exponential growth over the past 4 years, with revenue increasing 10 times and its customer base expanding 50 times. Initially dedicated to fulfilling Flipkart and Myntra orders, the company has significantly broadened its services to cater to a more diverse range of clients.

Service Diversification and Logistics Capabilities

Ekart now operates a comprehensive logistics network that includes B2B warehousing, B2C deliveries, part and full truckload operations, document logistics, and returned goods refurbishment. These service verticals are being offered not only to Flipkart-related entities but to a wider market, including external clients.

Shift Towards External Clientele

The logistics firm now counts nearly 1,000 external clients, a notable shift from its earlier focus solely on Flipkart and Myntra. Over the last three years, Ekart’s external business has grown 6 times in volume. The shift is strategic, as several brands have reportedly preferred the Flipkart supply chain experience over their internal systems.

Operational Setbacks in FY24

Despite its current profitability, Ekart reported financial challenges in the last known fiscal year. Revenue from operations dropped from ₹12,787 crore in FY23 to ₹12,115 crore in FY24. Simultaneously, net losses widened from ₹324 crore to ₹1,718 crore in FY24.

Response to Industry Trends

The logistics landscape is witnessing a shift as more e-commerce giants like Amazon, Flipkart, and Meesho build in-house delivery capabilities. This shift has led to increased pricing competition and volume redistribution. As a result, third-party logistics providers are consolidating to retain market share, with players like Delhivery acquiring Ecom Express.

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Strategic Expansion 

Ekart is expanding its reach into both organised retail and unorganised sectors. For example, it has begun servicing one of the largest school chains in the country. This move reflects its growing ambition to become a full-service logistics solution provider beyond the traditional e-commerce space.

Market Strategy

Looking ahead, Bhushan expects Ekart to double its revenue annually for the next 3 to 4 years. The emphasis remains on sustainable and profitable growth rather than expansion at the cost of margin. The company’s strategy includes maintaining high service standards, ensuring timely issue resolution, and offering customised logistics solutions.

Conclusion

Ekart’s transformation into a profitable logistics enterprise marks a pivotal moment for Flipkart’s supply chain business. With a broadening client base, diversified services, and a strong focus on operational efficiency, Ekart is now positioned as a leading logistics entity with a robust outlook for scalable and sustainable growth.

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