Flipkart India receives Rs 2,839 crore investment from parent entity
today Dec 4, 2019
Flipkart’s wholesale business Flipkart India has received Rs 2,839 crore ($426.7 million) in funding from its Singapore-based parent company Flipkart Limited as it prepares for its last sale season of the year.
Flipkart India has received its third and largest funding injection of 2019, according to regulatory filings accessed by ET Bureau. The business’ total funding for the year now totals Rs 5,701 crore. Flipkart India received Rs 1,431 crore in funding in January this year and Rs 1,616 crore in September.
The business will use the funds to help it prepare for its last major sale event of the year, “Big Shopping Days”. Flipkart’s largest sale event of the year, its recent “Big Billion Days” and Amazon’s festive sale collectively generated Rs 31,000 crore in sales according to a recent report by Red Seer Consulting. The report also stated that Flipkart had a 56% share of units shipped compared to Amazon but Amazon had a better (lower) rate of order cancellations.
As Flipkart’s wholesale arm, Flipkart India purchases products from manufacturers and sells them to its business-to-business partners which then sell them on Flipkart’s e-commerce marketplace. The supply chain was set up to adhere to the foreign direct investment regulation amendments which came into effect in spring. The business has faced heavy criticism from the Confederation of All India Traders for this practice which it believes goes against the spirit of the FDI regulations and harms Indian traders.
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