[Funding alert] Flipkart India receives Rs 2,839 Cr from parent firm
Flipkart, India’s leading online marketplace owned by global retailer Walmart, has received its third round of fund infusion of Rs 2838.84 crore this year from its parent company in Singapore.
The fresh infusion of the fund was received by Flipkart India Private Limited, the wholesale B2B division of the marketplace, which will be utilised to strengthen its B2B operations.
According to the regulatory filings, Flipkart received the fund infusion through an allotment of 8,115,761 shares at a premium of Rs 34,799.
In January this year, Flipkart India had raised $200 million, and in September, it had received $225.4 million from its parent firm.
The wholesale arm of Flipkart is the B2B entity of the marketplace where it is the via medium between the manufacturers and sellers on the platform. This model has been adopted by the ecommerce marketplaces in the country.
The latest fund infusion comes at a time when Flipkart is conducting its sale season for the year, 'The Big Shopping Days'. Earlier, Flipkart hosted 'The Big Billion Days' sale which was held between September 29 and October 4 of this year.
Flipkart has been faced with intense competition from its main rival, Amazon which also held its shopping sale – 'The Great Indian Festival' during the same period.
According to the market reports, Flipkart held the edge during the five-day sale period. Though, for both the competing players, the big push in sales came from Tier II and beyond locations.
Amazon has also been making massive investments in India. It has invested Rs 4,472 crore in its India operations spread across its marketplace, payment, and single-brand food retail business.
Walmart acquired Flipkart in May 2018 in a deal valued at $16 billion. Following the transaction, Flipkart founders – Sachin Bansal and Binny Bansal, eventually exited the company.
(Edited by Suman Singh)