Glossary
Net revenue
M5.04 · M5.05Also called net revenues, platform revenue.
What a platform keeps, as opposed to the value that flowed through it.
A marketplace with ₹8,500 crore of gross merchandise value at an 8% take rate reports ₹680 crore of net revenue.
The distinction is an accounting one with a large consequence. A company acting as an agent recognises only its commission; one acting as principal, taking inventory risk, recognises the whole sale. The same economic activity can therefore appear as ₹680 crore or ₹8,500 crore of revenue depending on the structure.
Multiples must be applied to net revenue. Applying them to gross flow values somebody else's sales.
Where this is taught
Related terms
Advertisements