Flipkart gets Rs 3,460 crore fund boost ahead of sale season

By

Isabelle Crossley

Published
Sep 19, 2018

Flipkart Internet, responsible for Flipkart’s online marketplace, has just gained one of its highest value capital infusions to date as its Singapore-based parent company has invested Rs 3,460 crore ($520 million) in the business ahead of the sale season.

As India’s largest festival and sale season approaches, Flipkart is preparing for its first season owned by its new US-based parent company Walmart. Looking to perform well and get the new partnership off to a good start, Flipkart Internet has received Rs 3,460 crore to prepare. The business is also expanding its delivery network to include more pin codes ahead of the sales as the season often brings in customers who do not usually shop online.

Flipkart is not the only e-commerce platform preparing for the sale season.

Amazon India has invested around Rs 5,400 crore into its Indian e-commerce business over the past four months in part to prepare for the sale season. The business has also increased its warehousing by 50 percent compared to last year. Amazon has Amazon Pay EMI and Flipkart has partnered with Kissht to allow for cardless credit that allows customers to shop without the need for a debit or credit card.

As the sale season leading up to Diwali becomes more and more important for online fashion and beauty sales, many brands and platforms earn the main chunk of their yearly revenue at this time.

The consultancy firm Redseer has estimated that the five-day sale season will reach gross sales of between $2.5 billion and $3 billion in India this year.