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Flipkart Internet Receives $90 Million Cash Infusion From Parent Entity: Report

Flipkart Internet posted a 33 per cent rise in operating revenue to Rs 10,476 crore in the fiscal year 2022

Flipkart Internet Receives $90 Million Cash Infusion From Parent Entity: Report

Outlook Start-Up Desk

POSTED ON January 11, 2023 2:39 PM

Flipkart Internet, the marketplace arm of e-commerce firm Flipkart, has received about $90 million cash infusion from its two Singapore-based entities Flipkart Marketplace and Flipkart Private, Economic Times (ET) reported. 

A resolution to infuse the capital, the first in 2023, was approved on December 29. Last year in March, Flipkart Marketplace received over $553 million from Walmart. The main source of revenue of Flipkart Internet is reportedly the commission from the sellers, advertising and other seller services to merchants.

Flipkart Internet posted a 33 per cent rise in operating revenue to Rs 10,476 crore in the fiscal year 2022, while losses widened to nearly Rs 4,400 crore.

The cash infusion is expected to help Flipkart in competing with US-based Amazon for leadership in the Indian e-marketplace as the development has come at a time when 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.

Flipkart recently announced its separation from PhonePe after the payments firm shifted its base from Singapore to India. Both of these companies are still a part of the Walmart Group. The company has paid $1 billion in tax after the separation for domicile change.

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.

Flipkart is reportedly 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.

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