Flipkart Internet, the marketplace arm of Walmart-owned ecommerce firm Flipkart, has received a cash infusion of about $90 million (Rs 722 crore) from its Singapore-based parent entity, according to regulatory filings accessed through business intelligence platform Tofler.
The fresh capital came from two Singapore-based entities – Flipkart Marketplace Pvt Ltd and Flipkart Pvt Ltd. A resolution to infuse the capital – the first this year – was approved on December 29. In March 2022, Flipkart Marketplace received over $553 million from Walmart.
Flipkart has several units in India for various businesses, including logistics. Flipkart Internet’s main source of revenue is commissions from sellers. It also offers advertising and other seller services to merchants.
Flipkart Internet posted a 33% rise in operating revenue to Rs 10,476 crore in fiscal year 2022, while losses widened to nearly Rs 4,400 crore.
A spokesperson for Flipkart did not immediately respond to ET’s queries on Tuesday.
The development comes at a time when rival Amazon India has shut down multiple businesses in India, such as food delivery, edtech and its distribution units, and fired employees at its local unit.
ET reported in November that the company planned to fire at least a few hundred employees in India. According to reports last week, Amazon has fired 1,000 employees in India as part of its global layoffs.
Flipkart recently separated PhonePe from the Flipkart group after the payments firm shifted its base from Singapore to India.
PhonePe is raising new capital from Walmart and other investors that may see the total round size, including primary and secondary share sales, hit almost $2 billion, ET reported.
Flipkart is also conducting a one-time payment of around $700 million to its staff for a stock options buyout as part of the PhonePe financing.
Regulatory filings by Walmart in the United States showed that Flipkart spent about $1.1 billion from February 1, 2022 to July 31, 2022. PhonePe’s shift to India also resulted in Walmart paying most of the $1 billion as taxes to the Indian government.
Flipkart has been investing in its business units like grocery, social commerce vertical Shopsy, and travel platform Cleartrip to scale up new offerings from the group while maintaining leadership in core categories like smartphones, fashion, large appliances, and others.
Flipkart also runs the online fashion platform Myntra.