Flipkart Singapore Parent Infuses INR 3,249 Cr In Marketplace Arm

Walmart-owned ecommerce giant Flipkart, through its Singapore holding company, has infused INR 3,248.9 Cr (around $379 Mn) in its marketplace arm, Flipkart Internet, according to filings sourced from the Registrar of Companies (RoC).

Flipkart’s board approved the allotment of 4,70,772 Class A equity shares at an issue price of INR 69,014.17 each on a rights basis to raise the sum from Flipkart Marketplace Private Limited, Singapore. 

It is pertinent to mention that this is an internal cash transfer and not fresh funding at a parent level. 

However, this is the third major fund infusion received by Flipkart Internet from its Singapore-based parent company in the last one year or so. In January 2024, the company received $111 Mn. The same year, the Singapore parent injected another $170 into the marketplace entity in two tranches.

Flipkart’s marketplace arm saw its revenue jump 21% year-on-year to INR 17,907.3 Cr in the fiscal year 2023-24 (FY24), while its losses narrowed 41% YoY to INR 2,358 Cr.

Flipkart Internet generates income through seller commissions and advertising. The advertising earnings surpassed its marketplace fees in FY24, as per the company’s financial report. 

Flipkart Vs Amazon Vs Meesho: The IPO Race Begins

Founded in 2007 by Sachin and Binny Bansal, Flipkart is India’s largest and most-funded ecommerce company. It operates through multiple entities in India, including Myntra (fashion), Flipkart Internet (ecommerce marketplace), eKart (logistics), Flipkart Health+ (healthtech), cleartrip (travel tech), Flipkart Wholesale (online B2B marketplace), among others.

In March last year, the ecommerce giant reportedly pocketed $1 Bn in funding from Walmart and tech giant Google.

The poster child of India’s consumer internet story, Flipkart has now set its sights on going public. The Bengaluru-based online retailer is reportedly planning to float an initial public offering (IPO) in the next 12-15 months and has received internal approval to shift its domicile back to India.

As it looks to tap the public markets, the company’s focus is on achieving profitability at the Group level as most of its subsidiaries (except Mnytra) are running losses. In an effort to improve its bottom line, the company has expanded into new verticals, including quick commerce with Flipkart Minutes and fintech with super.money.

It must be noted that Flipkart’s rivals Amazon and Meesho are also gearing for mega IPOs. As per reports, Amazon is looking to spin off its India entity to list it on exchanges here, while Meesho has enlisted bankers to advise it on its potential $1 Bn IPO, which is expected to be launched by the end of 2025.