Flipkart CEO Faces Dual Challenge: Cut Cash Burn and Grow Quick-Commerce Arm Flipkart Minutes

As Flipkart inches closer to its initial public offering (IPO) plans, CEO Kalyan Krishnamurthy has been handed a tough task—slash the company’s cash burn to around $250 million per year while simultaneously scaling up its quick-commerce venture, Flipkart Minutes.

This balancing act is anything but easy. On one side, Flipkart is expected to tighten its expenses, and on the other, it must aggressively expand into the competitive quick-commerce market, where rivals like Zomato’s Blinkit, Zepto, Swiggy Instamart, and Tata BigBasket are already locked in a fierce battle.

Flipkart Minutes at the Center of the Cost vs Growth Tug-of-War

Flipkart has already begun making difficult decisions to streamline operations. The company recently shut down its pharmacy business, Flipkart Health+, and has been trimming down several non-core divisions. These moves signal a clear intent to focus resources only on high-potential growth areas.

Kalyan has to decide which unit continues to receive money and which ones will face the axe,” a person familiar with the matter told Moneycontrol.

With Flipkart Minutes emerging as a strategic focus, questions arise over how much investment it will attract, especially when other business lines may face cuts in funding.

Pressure Mounts as Flipkart Aims to Strengthen Quick-Commerce Footprint

While Flipkart did not respond to queries from Moneycontrol on April 21, industry watchers are closely monitoring Krishnamurthy’s next moves. The monthly cash burn of Flipkart stands at around $40 million, significantly higher than Zepto’s reported burn rate of over $30 million. However, Flipkart also operates at a much larger scale, recording a gross merchandise value (GMV) of $29 billion, in contrast to Zepto’s $5 billion.

This contrast underscores the scale at which Flipkart is operating, but also the financial pressures it faces as it attempts to control spending while sustaining growth.

The Road Ahead: Strategic Cuts or Bold Bets?

The next few months could define Flipkart’s trajectory leading up to its IPO. With Flipkart Minutes in the spotlight, Krishnamurthy must navigate a tightrope—either double down on high-growth bets or take bold decisions to exit low-performing units.

For now, all eyes remain on Flipkart’s leadership to see which path they will choose in this high-stakes game of strategy and survival.