Flipkart receives Rs 1,616 crore from parent firm

Flipkart India Pvt Ltd, the wholesale arm of the Walmart-owned e-commerce marketplace in India, has received fresh funding of Rs 1,616 crore ($224.9 million) from its Singapore-based parent entity, Flipkart Private Limited.
 
Flipkart receives Rs 1,616 crore from parent firm - Flipkart

The latest funding is the second major investment in Flipkart India this year. In January, the Singapore-based parent company had pumped Rs 1,431 crore into Flipkart.
 
Flipkart is expected to use the funds to diversify its business, expand its customer base, and product categories this year. The company has also been investing heavily to strengthen its technology and infrastructure network in the country.
 
According to filings made with The Ministry of Corporate Affairs, Flipkart India has allotted 4,64,403 equity shares to its holding entity for a price of Rs 34,800 per share.
 
The fresh funding is also expected to give a fillip to the company’s flagship event Big Billion day sale 2019, which is scheduled from September 29 to October 2.
 
Flipkart’s rival Amazon has also been investing heavily in the Indian market. In June this year, it had invested around Rs 2,800 crore into its Indian marketplace to further strengthen its presence in India.
 
Flipkart and Amazon are locked in an intense battle for the top spot in India’s burgeoning e-commerce market.

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