Parent company of Flipkart based in Singapore invests Rs 1,421 crore in the marketplace wing

According to submissions made to the Register of Companies (RoC), Flipkart, which is owned by Walmart, infused Rs 1,421 crore (approximately 170 million USD) into its Indian marketplace Flipkart Internet through its Singapore-based holding company in two installments on March 23 and April 6.

This is an internal cash transfer, not parent-level fresh funding. However, in 2024, this is the second major fund infusion that Flipkart Internet has received from its Singapore subsidiaries. On March 4, ET reported that the company received USD 111 million.

The new funding brings the market entity's total infusion to 281 million USD. It has come close to finalizing plans to launch Flipkart's e-commerce service.

Flipkart is making efforts to reduce delivery schedule across categories.

The Bengaluru-based retailer introduced same-day delivery of products across several categories from February, at no extra cost. It initially launched the benefit in 20 cities, including metros like Delhi and Bengaluru and smaller cities like Guwahati and Ludhiana.

Flipkart is also in talks to raise 1 billion USD, injecting 600 million USD with parent Walmart, ET reported on December 21. It will be the online retailer's first fundraising since 2021, when it closed a 3.6 billion USD funding round. worth 37.6 billion USD.

In July 2023, Walmart also helped transfer 750 million USD to Flipkart employees during PhonePe's funding round and departure from the group.

In the year ending March 2023, Flipkart Internet's operating income rose 42% to Rs 14,845 crore, while its total loss narrowed 9% to Rs 4,026 crore, according to regulatory filings.

Meanwhile, Flipkart's arch-rival Amazon India has also received over Rs 1,000 crore in support this year from its US parent for its various marketplace and payment players.

In February, Amazon Seller Services, which runs Amazon's Indian marketplace, received Rs 830 crore from its US parent company. Amazon Pay India, a fintech outfit, received Rs 350 crore in January.

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