Etsy vs Flipkart: Revenue, Profit and Business Model
Etsy had $2.9B of annual revenue in FY2025. Flipkart had ~$9.6B of annual revenue in FY2025 and a net loss of ~$601.9M.
Latest financial snapshot
Financial summary
Etsy
Etsy earns money from fees on a marketplace it does not stock, so gross margin stays near 72% (FY2025 gross profit was $2.07B on $2.88B of revenue). The pandemic pulled demand forward: GMS more than doubled to $10.3B in 2020, then consolidated GMS declined from $13.3B in 2022 to $11.9B in 2025. Revenue held up only because the take rate rose from 22.3% to 24.2% as sellers paid more for advertising and payments. FY2025 net income fell 46.3% to $163.0M as operating expenses rose 8.8%. In 2026 the picture improved: Q2 revenue was $668M, adjusted EBITDA was $195M (a 29.2% margin), and Etsy guided to mid-single-digit full-year GMS growth. Etsy, Inc. is a major American e-commerce company focused on handmade and vintage items, maintaining a market valuation generally exceeding $7 billion.
Flipkart
Flipkart has grown revenue steadily while still losing money. Flipkart India Pvt Ltd's consolidated revenue from operations rose from ~$6.49 billion (₹55,924 crore) in FY2023 to ~$8.18 billion (₹70,542 crore) in FY2024 and ~$9.6 billion (₹82,787 crore) in FY2025 (+17.3%), but its consolidated loss widened from ~$493 million (₹4,248 crore) to ~$602 million (₹5,189 crore). The marketplace arm, Flipkart Internet, is improving faster: FY2025 revenue reached ~$2.38 billion (₹20,493 crore) and its net loss fell 37% to ~$173 million (₹1,494 crore), with EBITDA loss narrowing to ~$125 million (₹1,078 crore). Walmart paid $16 billion for 77% in 2018; later private valuations were $37.6 billion (2021 round), about $36 billion (2024 round led by Walmart with Google participating) and about $38.2 billion in a July 2026 employee buyback. Reports in September 2026 said Flipkart was targeting an IPO valuation near $50 billion, though the timeline remains uncertain.
Revenue and profit by year
Etsy
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2.9B | — | — | +2.7% | Source |
| FY2024 | $2.8B | — | — | +2.2% | Source |
| FY2023 | $2.7B | — | — | +7.1% | Source |
| FY2022 | $2.6B | — | — | +10.2% | Source |
| FY2021 | $2.3B | $493.5M | 21.2% | +35.0% | Source |
| FY2020 | $1.7B | $349.2M | 20.2% | +110.9% | Source |
| FY2019 | $818.4M | $95.9M | 11.7% | +35.6% | Source |
| FY2018 | $603.7M | $77.5M | 12.8% | +36.8% | Source |
| FY2017 | $441.2M | $81.8M | 18.5% | +20.9% | Source |
| FY2016 | $365M | -$29.9M | -8.2% | — | Source |
Flipkart
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$9.6B | ~-$601.9M | -6.3% | +17.4% | Source |
| FY2024 | ~$8.2B | ~-$492.8M | -6.0% | +26.1% | Source |
| FY2023 | ~$6.5B | — | — | — | Source |
Where the revenue comes from
Etsy
- Marketplace Revenue~69.6%
Marketplace revenue includes the 6.5% transaction fee, $0.20 listing fees, and Etsy Payments processing fees. It totaled $2,007.2 million in FY2025, down 0.7% from $2,020.7 million in FY2024, as lower GMS offset fee and payments gains.
- Services Revenue~30.4%
Services revenue includes Etsy Ads (on-site, cost-per-click), Offsite Ads fees and shipping labels. It totaled $876.3 million in FY2025, up 11.3% from $787.6 million in FY2024, and drove all of the year's revenue growth.
- Other Revenue
Not separately reported
Etsy does not break out a separate "other" line in its FY2025 results; total revenue is reported as Marketplace plus Services. Any residual items are immaterial.
- Subsidiary Marketplace Revenue (Discontinued)
~0% (divested)
Reverb was included until its June 2, 2025 sale. Depop is reported as discontinued operations in 2026 and was sold to eBay on July 30, 2026. In FY2025 Depop generated about $1.07 billion of GMS.
Flipkart
- Marketplace (Flipkart Internet)
Not formally reported
Commissions, fixed fees, shipping and fulfilment charges from third-party sellers, plus advertising fees for sponsored listings: about $2.38 billion (INR 20,493 crore) in FY2025, up 14%.
- Flipkart India (B2B Goods)
Not formally reported
Consolidated revenue from operations of about $9.6 billion (INR 82,787 crore) in FY2025, mostly from selling goods business-to-business, including supplying sellers and kirana stores.
- Group Businesses
Not formally reported
Myntra (fashion and beauty), Ekart (logistics), Cleartrip (travel commissions) and Shopsy (low-price social commerce).
Business model and strategy
Etsy
How it makes money
Etsy operates a pure B2C and C2C two-sided marketplace model. They do not own warehouses or delivery trucks. They simply provide the software platform connecting buyers and sellers. The core revenue engine relies entirely on 'Take Rates'. The seller pays a fee just to list an item, and then Etsy takes a large cut (often over 6.5%) of the final sale price, plus payment processing fees.
Growth strategy
With growth in its core market flat, Etsy is concentrating on search and on removing mass-produced goods. It has more than 100 million unique items, which makes searching hard, so it is investing in AI to improve search relevance. It is also removing sellers of cheap mass-produced items, often dropshipped from China and presented as handmade, to protect the brand's reputation for genuine handmade goods.
Competitive advantage
Etsy's advantage is a recognizable brand and a two-sided network. Buyers come because the handmade and vintage sellers are there, and sellers list because the buyers are there. A new competitor would start with neither side, which makes the handmade category hard to enter.
Flipkart
How it makes money
Flipkart makes money from several linked businesses. 1. Marketplace (Flipkart Internet Pvt Ltd): third-party sellers list products on Flipkart and pay commissions, fixed fees, shipping and fulfilment charges, plus advertising fees for sponsored listings. Indian FDI rules bar foreign-owned marketplaces from holding inventory for sale to consumers, so the marketplace earns service income rather than product revenue;
Growth strategy
Flipkart's growth plan rests on three bets. First, value commerce: Shopsy targets price-sensitive shoppers in Tier-2 and Tier-3 towns against Meesho. Second, quick commerce: Flipkart Minutes, launched in August 2024, is expanding its dark-store network to compete with Blinkit, Swiggy Instamart, Zepto and Amazon Now.
Competitive advantage
Flipkart's edge comes from its own logistics network (Ekart), close knowledge of Indian shoppers, and leadership in smartphones and fashion. It built delivery in-house when third-party couriers were unreliable, owns Myntra in fashion, and uses exclusive phone launches and bank-backed no-cost EMIs to drive high-value electronics sales. Walmart's ownership gives it deep funding and global sourcing.
Questions about Etsy vs Flipkart
Which company has higher revenue — Etsy, Inc. or Flipkart?
Etsy, Inc. had $2.9B (FY2025), while Flipkart had ~$9.6B (FY2025). By latest annual revenue, Flipkart is the larger business, with Etsy, Inc. showing a smaller revenue base.
What is the market cap of Etsy, Inc. vs Flipkart?
Etsy, Inc. has a market capitalisation of $6.7B. A public market cap figure for Flipkart was not available (it may be privately held).
How does revenue per employee compare for Etsy, Inc. and Flipkart?
Etsy, Inc. has $1.20M / employee in revenue per employee, while Flipkart has $213k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Etsy, Inc. and Flipkart make money?
Etsy, Inc. and Flipkart generate revenue in fundamentally different ways. Etsy, Inc.: Etsy operates a pure B2C and C2C two-sided marketplace model. Flipkart: Flipkart makes money from several linked businesses.
Is Etsy, Inc. bigger than Flipkart?
By last reported revenue, Flipkart (~$9.6B (FY2025)) is the larger company compared to Etsy, Inc. ($2.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Etsy vs Flipkart overview