Flipkart’s marketplace arm, Flipkart Internet, has received a cash infusion, raising about INR 924 crore ($111 million) in two parts from its related entities based in Singapore.
According to ROC filing, the ecommerce giant backed by Walmart received new funding from its affiliated entities based in Singapore on January 8 of this year. The company sanctioned two resolutions to inject capital into it on December 20 and 22 of the previous year.
ET was the first to report this development.
Earlier reports suggested that Flipkart was exploring the possibility of raising a new round of funding worth $1 billion, with Walmart pledging $600 million. This new injection is expected to value Flipkart at approximately 5-10% higher than its previous valuation of $33 billion.
However, Flipkart confirmed Walmart’s infusion of $600 Mn in the company but said that the rest is speculative.
Continue Exploring: Walmart invests $600 Million in Flipkart as e-commerce giant gears up for $1 Billion funding round
Last year, Walmart acquired additional shares of Flipkart, purchasing Tiger Global Management’s shares for $1.4 billion and providing the hedge fund with an exit from the company.
This comes at a time when Flipkart is experiencing significant growth in sales. The Big Billion Days event held in October last year marked its largest ever, attracting approximately 1.4 billion customers over the course of eight days (8-15).
Flipkart Internet generates its revenue predominantly from commission charges and additional services provided to merchants, such as product advertising. Its operating revenue surged by 42%, reaching INR 14,845.8 billion in the fiscal year 2022-23 (FY23), compared to INR 10,477.4 billion in FY22.
The ecommerce giant saw a 9% reduction in its net loss, which decreased to INR 4,026.5 billion in FY23 from INR 4,419.5 billion in FY22. Total expenditure increased to INR 19,043 billion in FY23, with ESOP costs amounting to INR 2,155 billion.
Meanwhile, Amazon India’s marketplace business, Amazon Seller Services, recently secured INR 830 crore from its US parent company. As part of this capital injection, Amazon Seller Services has allocated 830 million equity shares to Amazon Corporate Holdings Ltd and Amazon.com.inc.
Continue Exploring: Amazon India’s marketplace division sees INR 830 Cr investment from US parent