Flipkart India Private Ltd, the wholesale entity of Walmart-controlled Flipkart marketplace in India, has received a fresh infusion of funds to the tune of ₹1,431.37 crore from its parent Flipkart Private Ltd Singapore (formerly Flipkart Ltd), its second big infusion in two months.
Last December, Flipkart India received an infusion of ₹2,190.64 crore from its parent entity, making it Walmart’s first big infusion of capital into Flipkart after it acquired a majority stake in the latter for $16 billion in May 2018. As reported by BusinessLine then, this is just one of the many tranches that Walmart is expected to infuse into Flipkart to compete against rival Amazon.in
As per regulatory filings accessed by paper.vc, a data intelligence platform, Flipkart’s parent entity was allotted 4,86,861 shares of ₹1 each at a securities premium of ₹29,399 per share aggregating to ₹1,431.37 crore in Flipkart India.
This fresh infusion comes at a time when India’s largest e-commerce firm is going through a make-over with CEO Kalyan Krishnamurthy at the helm. Flipkart is also evaluating the government’s recent FDI in e-commerce rules issued in December which industry experts say singles out certain large e-commerce firms, and has sought an extension from the government to the February 1 deadline for adhering to the rules.
The e-commerce leader was clear that while the rules will have long-term implications in the evolution of the promising sector and the whole ecosystem, it is important that a broad market-driven framework is developed through a consultative process, in order to drive the industry forward.