Flipkart Internet Receives $111 Million Infusion from Singapore Entities
- ByStartupStory | March 4, 2024
Flipkart Internet, the marketplace arm of Walmart-owned ecommerce giant Flipkart, received a cash infusion of about Rs 924 crore ($111 million) in two parts from its related entities based in Singapore in January.
According to regulatory filings with the Registrar of Companies (ROC), the fresh capital came from the firm’s related Singapore-based entities on January 8 this year. “Two resolutions to infuse capital into the firm were approved on December 20 and December 22 last year,” as per the documents.
The funding injection coincides with Amazon’s investments in its India entities, which have surpassed Rs 1,000 crore this year. This includes a Rs 830 crore infusion into Amazon Seller Services and a Rs 350 crore investment in Amazon Pay in January. Flipkart is also reportedly in discussions to raise up to $1 billion, with parent Walmart committing to inject $600 million. “This would be the first fundraise for India’s largest online retailer since 2021,” as reported.
Flipkart’s valuation, adjusted to $33 billion after PhonePe’s separation from the group in December 2022, is expected to see a 5-10% premium with the fresh fundraise. Walmart also facilitated a $750 million one-time payout for Flipkart employees as part of PhonePe’s funding round and separation from the group last year.
In its earnings call for the fourth quarter, parent Walmart highlighted Flipkart’s significant contribution to international sales growth, alongside Mexico’s Walmex and China. “India, Walmex (Mexico), and China are the three growth leaders,” said Walmart’s chief financial officer John David Rainey.
Flipkart Internet reported a 42% growth in operating revenue for the financial year 2023, reaching Rs 14,845 crore, while its total loss narrowed by 9% to Rs 4,026 crore.
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