The chief executive officer of Flipkart stated that the primary obstacle for e-commerce is the cost structure associated with logistics.

During the Walmart Growth Summit, Flipkart CEO Kalyan Krishnamurthy addressed the challenges facing the e-commerce sector in India, emphasizing that it is still in its early stages of development. He highlighted the complexity of logistics cost as the foremost hurdle for the segment's growth. Krishnamurthy acknowledged the Indian government's efforts in simplifying taxation and promoting ease of doing business, which has positively impacted the e-commerce industry's expansion.

Krishnamurthy stressed the importance of reducing logistics costs, particularly in a market like India where consumers typically have lower spending power. He indicated that achieving a lower cost structure for logistics would significantly enhance the penetration of e-commerce in the country.

Additionally, Flipkart announced plans to transition its delivery fleet to electric vehicles by 2030, aligning with sustainability goals and potentially reducing operational costs in the long term. Regarding the current state of e-commerce penetration, Krishnamurthy noted that it stands at around 7-8 percent compared to traditional retail. However, certain product categories like electronics have witnessed higher penetration rates.

He commended the government's efforts in simplifying taxes, which was previously a significant challenge for businesses. Krishnamurthy praised the government's adoption of ease of doing business as a strategic initiative, along with the integration of technology to facilitate business operations.

Despite Flipkart's 9.4 percent increase in consolidated net total income to Rs 56,012.8 crore for the fiscal year 2023, up from Rs 51,176 crore in FY 2022, the company experienced a widening loss, reaching Rs 4,890.6 crore compared to Rs 3,371.2 crore in the previous fiscal year. This indicates ongoing challenges despite revenue growth, potentially attributed to factors such as increased investments or operational expenses.