Flipkart Internet Secures $111 Million in Fresh Funding

In January, Flipkart Internet, the marketplace division of the Walmart-owned e-commerce company Flipkart, received two payments totaling around Rs 924 crore ($111 million) from its Singaporean-based connected businesses, Based on regulatory documents submitted to the Registrar of Companies (ROC).

Flipkart operates several companies in India, including the e-commerce platform and logistics. On January 8 of the current year, new funding was provided by the company's connected Singaporean firms.

This injection coincides with competitor Amazon's investment in its Indian subsidiaries, which has already surpassed Rs 1,000 crore this year. Among these investments is a Rs 830 crore infusion made into Amazon Seller Services, the company that manages the Amazon marketplace in India. Additionally, in January, Amazon invested Rs 350 crore in the company that manages Amazon Pay, its fintech division.

As ET noted on December 21, Flipkart's parent company Walmart has committed to investing $600 million, and the company is also in discussions to raise up to $1 billion. For India's biggest online retailer, this would be the first fundraising attempt since 2021, when it concluded a $3.6 billion investment round at a $37.6 billion valuation.

Following the separation of payments leader PhonePe from the business in December 2022, Flipkart's valuation was revised to $33 billion. Flipkart is probably worth between five and ten percent more after this new funding round than it was previously.

In addition, Walmart helped Flipkart staff get a one-time payment of $750 million as part of PhonePe's investment round and split from the company last year.

The parent company of Walmart stated during its fourth-quarter results call that Flipkart, Walmex in Mexico, and China, with their robust performance over holidays, were driving growth in its overseas sales.

Approximately three-fourths of foreign growth over the next several years is predicted to come from India, China, and Walmex (Mexico), according to a statement made at the time by Walmart's chief financial officer, John David Rainey.

Flipkart Internet's operational income increased by 42% to Rs 14,845 crore in the fiscal year 2023, while its overall loss decreased by 9% to Rs 4,026 crore.