Published
Jan 17, 2019
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Flipkart gets Rs 1,431 crore infusion from Singapore entity

Published
Jan 17, 2019

Walmart Inc’s Indian e-commerce business Flipkart has received another capital infusion of Rs 1,431 crore ($201.6 million) from its Singapore-based parent company.
 

Flipkart gets Rs 1,431 crore infusion from Singapore entity - Flipkart


The latest funding is the second major investment in Flipkart India in less than a month. In December 2018, the Singapore-based parent company had pumped in Rs 2,191 crore into its marketplace business.
 
Flipkart is expected to use the funds to diversify its business, expand its customer base, and product categories this year.

The current round of funding was made on January 7. Around 4.86 lakh equity shares were allotted based on the resolutions passed by the board of directors of Flipkart India Private Limited at their meeting held on January 7, 2019, the company said in a regulatory filing made with the Registrar of Companies.
 
The latest funding takes Flipkart’s total capital infusion into its India business to Rs 7,083 crore after the Walmart deal. The funding is also significant as it comes weeks before the revised FDI (foreign direct investment) rules in e-commerce come into effect on February 1.
 
Flipkart which thrives on deep discounts and cash backs will be barred from offering deep discounts, cash backs, and exclusive deals among other things from next month.
 
Flipkart and other e-commerce majors are hoping the government will give them more time to comply with the FDI rules and extend the February 1 deadline.

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