The Singapore-based parent company of Flipkart Internet, the Indian marketplace division of Flipkart, has invested $90 million (Rs 772 crore) in the company. According to a regulatory filing, the board of Flipkart Internet authorised the resolution to inject cash into the company on December 29 of last year. Two Singapore-based companies, Flipkart Marketplace Private Limited and Flipkart Private Limited, raised the new funding. Where the e-commerce behemoth plans to use the money is unclear.
In the fiscal year 2021–2022, Flipkart Internet’s operating revenue increased by 33% to Rs 10,476 crore, but its losses increased to Rs 4,400 crore. Employee stock option holders will get cash payouts of around $700 million as part of the Walmart-owned e-commerce giant’s separation from digital payment upstart PhonePe.
More recently, as PhonePe is ready for an IPO, the two companies declared full ownership separation. Prior to PhonePe’s anticipated multimillion-dollar fundraising effort, which would be its biggest, the announcement was made. A partial spin-off of PhonePe was announced by Flipkart in December 2020 in an effort to give the platform access to committed, long-term funding to support its expansion plans. With about the same time, investors including Walmart gave PhonePe $700 million at a valuation of $5.5 billion.
