E-commerce Giants Increase Ad Spend Sharply in FY25

India’s e-commerce sector is witnessing an aggressive surge in advertising and promotional spending in FY25. Leading players such as Flipkart, Myntra, Reliance Retail (Ajio), and Nykaa have increased budgets sharply to capture consumer attention, drive festive sales, and strengthen brand recall. The rise highlights how marketing has become a central lever in the battle for dominance in a competitive digital marketplace.

Flipkart’s Big Bet on Marketing

Flipkart registered the steepest jump in promotional spending, increasing its advertising and promotion (A&P) costs by 176.8 percent — from ₹9.5 crore in FY24 to ₹26.3 crore in FY25. While revenues grew 17.4 percent to ₹82,787.3 crore, losses also expanded by 22.1 percent to ₹5,188.9 crore. The numbers reflect a classic growth-versus-profitability dilemma, where rising visibility has yet to translate into financial sustainability.

Myntra Balances Growth with Profit

Myntra followed a more balanced path, with A&P spending up 25.5 percent from ₹167.7 crore to ₹210.5 crore. Revenues rose 18 percent to ₹604.3 crore, but the standout achievement was profitability: net profit surged to ₹54.8 crore in FY25 compared to just ₹3.1 crore in FY24. Myntra’s performance suggests that disciplined cost management alongside smart campaigns can deliver both growth and profit.

Reliance Retail and Nykaa Expand Aggressively

Reliance Retail, through Ajio, boosted its A&P expenses by 22.1 percent, climbing to ₹1,206.5 crore. While consolidated revenue grew 6.6 percent, the heavy spending continues to put pressure on margins. Nykaa, on the other hand, spent ₹995 crore on marketing versus ₹739 crore last year — a 34.6 percent increase. Revenues grew 24.5 percent to ₹7,949.8 crore, and profits jumped 81.3 percent to ₹72.1 crore, showing how carefully planned campaigns can strengthen both topline and bottom line.

Innovative Campaign Strategies

The year also saw bold, creative campaigns. Flipkart launched youth-centric initiatives like “After Dark #IYKYFK” and regional activations such as Gudi Padwa specials in Maharashtra. Myntra relied on celebrities including Shah Rukh Khan and Kiara Advani, while also executing regional campaigns like “Palich Palich Pongal” in Tamil Nadu. Ajio leaned into its “Because Fashion” theme with AI-powered sales and the #FashionBeyondLabels campaign. Nykaa pushed experiential formats such as “Nykaa Wali Shaadi” and influencer-driven Valentine’s Day promotions. These campaigns reflect how e-commerce brands are mixing star power, cultural cues, and technology to capture diverse audiences.

Challenges and Future Outlook

Despite the surge in advertising spends, the big challenge remains sustainability. For some platforms like Flipkart, rising expenses are eroding profits, while others like Myntra and Nykaa have managed to convert higher spends into growth and financial strength. Localisation of campaigns is another trend, but balancing regional appeal with nationwide branding adds complexity and cost. Going forward, e-commerce players will need to strike a delicate balance between market share expansion and profitability. Success will depend not on how much is spent, but on how intelligently budgets are deployed to deliver long-term brand loyalty and consumer trust.