Flipkart Internet receives over 700 crore infusion from parent company in Singapore

Flipkart Internet, the Walmart-backed company’s online marketplace, has raised $90 million ( 722 crore) infusion of funds from its Singapore branch, pursuant to a economic times Report.

This is the first capital injection this year into the e-commerce giant’s marketplace division. The cash injection decision was reportedly approved on December 29 last year.

The fresh capital comes from two Singapore-based companies including Flipkart Marketplace Private Limited and Flipkart Private Limited, the report added.

The capital injection will give more ammunition to Flipkart, which is locked in an intense battle with US company Amazon for leadership in India’s burgeoning e-commerce market.

Recently, Flipkart and PhonePe completed their split. However, both companies will continue to operate under Walmart.

PhonePe was acquired by Flipkart Group in 2016.

“As part of this transaction, existing shareholders of Flipkart Singapore and PhonePe Singapore, led by Walmart, directly acquired shares in PhonePe India. This completes the move to make PhonePe a fully India-based company, a process that began earlier this year,” read a statement.

Walmart remains the controlling shareholder of both groups of companies.

“Flipkart and PhonePe are proud native Indian brands with a user base of more than 400 million each. We look forward to the next phase of our growth as we invest in new businesses – such as insurance, wealth management and lending, while enabling the next wave of growth for UPI payments in India. This will help advance our vision of bringing financial inclusion to billions of Indians,” said Sameer Nigam, Founder and CEO of PhonePe.

In 2018, Flipkart Internet had more than received 3,462 crore fund infusion from Flipkart Marketplace, Singapore.

READ :  Twitter's 'see less often' button is a slick way to force promoted content

While Flipkart has the backing of US retail giant Walmart, Amazon India has also received millions of dollars in funding from the US parent company over the year for businesses like marketplace and payments.

Flipkart Internet Private Limited operating income range is over 500 crore for the year ended 31 March 2022. The EBITDA fell by 64.21% compared to the previous year. Meanwhile, its book value is down 36.76%, according to data accessed by business intelligence platform Tofler.

Get all company news and updates on Live Mint. Download the Mint News app for daily market updates and live economic news.

More less