Flipkart has multiple units in India and operates various businesses including logistics and e-commerce marketplace. The new capital came from the company’s related entities in Singapore on January 8 this year. Documents show that two resolutions to inject capital into the company were approved on December 20 and December 22 last year.
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The capital infusion comes as rival Amazon has invested over 1,000 crore rupees in its Indian entities this year, including an 8.3 billion rupee infusion into Amazon Seller Services, the entity that runs the Amazon marketplace in India. Amazon also invested Rs 350 crore in January in the entity running its fintech arm Amazon Pay.
According to a report by The Economic Times on December 21, Flipkart is also in talks to raise up to US$1 billion in funding, with parent company Walmart committing to inject US$600 million. This will be the first funding round for India’s largest online retailer since 2021, when it completed a $3.6 billion funding round at a valuation of $37.6 billion.
Flipkart’s valuation was revised to $33 billion in December 2022 after payments leader PhonePe was spun off from the group. The new round of funding is likely to value Flipkart at a premium of about 5-10% to its latest valuation.
Last year, Walmart also made a one-time payment of $750 million to Flipkart employees as part of PhonePe’s financing and separation from the group.
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Parent company Walmart said on its fourth-quarter earnings call that its international sales growth was led by Flipkart, Walmex Mexico and China, which performed strongly during the holiday season. “India, Walmex (Mexico) and China are the three growth leaders and are expected to account for about three-quarters of global growth in the next few years,” Walmart Chief Financial Officer John David Rainey said at the time .
Flipkart Internet reported that operating income increased 42% to 14,845 billion rupees in fiscal 2023, while total losses narrowed 9% to 4,026 billion rupees.