Ecommerce Major Flipkart has invested around $257 Mn in its logistics subsidiary Ekart, operated by Instakart Services Pvt. Ltd. during the period between October and November 2017, as shown in the filings with the Registrar.
The investment was made in multiple tranches through Singapore-based group company Klick2Shop Logistics Services International Pte. The transaction was done by allocating equity shares at INR 52.51 per share.
According to the filings, Klick2Shop infused $50.8 Mn (INR 3.23 Bn) on October 9, 2017, and topped it up with two more rounds in November. This included an investment of another $50.8 Mn (INR 3.23 Bn) on November 7, 2017, and $154 Mn (INR 9.81 Bn) on November 27, 2017.
Prior to that, the August 2017 filings also revealed an allocation of $460 Mn (INR 3000 Cr) to Ekart for the investment deals. The filing stated, “Considering the future requirements of the company whereby it may have to make strategic investments in other business/acquire companies for inorganic growth, extend loans and/ or guarantee to other corporates or provide security in connection with loans availed by other corporate, it is proposed to fix the limits at $460 Mn (INR 3, 000 Cr).”
Also, in September 2017, Flipkart invested $147 Mn (INR 961.4 Cr) in two tranches in Ekart via Klick2Shop.
An email sent to Flipkart did not elicit any response till the time of publication.