Walmart filings show Flipkart spent $1.1 billion from February to July this year
Flipkart spent $1.1 billion from February 1 to July 31 this year, according to its US-based parent company Walmart. The e-commerce giant spent the funds on things including mergers and acquisitions, capital expenditure, and working capital requirements among others.
Flipkart spent the funds across its own business, its fashion arm Myntra, and its phone business PhonePe, Walmart announced in a filing on the US Securities and Exchange Commission, ET Tech reported. Following what the business saw as a slower start to the financial year due to factors such as inflation, recent high festive sales suggest a strong performance in the third quarter of the 2023 financial year.
In its report for the second quarter of the 2023 financial year, Walmart stated that, of the $3.5 billion in cash the business has available globally that could not be freely transferred to the US as of July 31, 2022, “approximately $1.1 billion can only be accessed through dividends or inter-company financing arrangements subject to approval of the Flipkart minority shareholders; however, this cash is expected to be utilised by Flipkart,” ET Bureau reported.
The amount of money essentially in Flipkart’s pot stood at $2.2 billion in January 31, 2022, according to Walmart’s March financial filing. Flipkart has made a number of investments and acquisitions so far this fiscal year and incurred marketing costs for its platforms including Myntra and social commerce platform Shopsy.
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