Walmart-Owned E-commerce Leader Continues Strategic Internal Funding Amid Preparations for Potential IPO
Flipkart Internet, the marketplace division of Walmart-backed e-commerce giant Flipkart, has secured a substantial capital infusion of ₹3,248.9 crore (approximately $379 million) from its Singapore-based parent company, according to recent regulatory filings accessed through the Registrar of Companies (RoC).
The board of directors at Flipkart has approved the allotment of 470,772 Class A equity shares at an issue price of ₹69,014.17 per share on a rights basis to raise these funds from Flipkart Marketplace Private Limited, Singapore.
A Pattern of Internal Capital Transfers
It’s important to note that this transaction represents an internal fund transfer within the Flipkart corporate structure rather than fresh external investment at the parent level. This capital movement appears to be part of a strategic financial planning approach by the Walmart-owned e-commerce leader.
This latest cash infusion marks the third significant funding transfer received by Flipkart Internet from its Singapore-based parent entity within approximately the past year:
- January 2024: ₹924 crore ($111 million) from related Singapore-based entities
- March-April 2023: ₹1,421 crore ($170 million) provided in two separate tranches
- Current infusion: ₹3,248.9 crore ($379 million)
Improving Financial Performance
The capital infusion comes at a time when Flipkart Internet has been demonstrating improved financial metrics. For the fiscal year 2023-24 (FY24), the marketplace arm reported:
- Revenue: ₹17,907.3 crore, representing a robust 21% year-on-year growth
- Losses: ₹2,358 crore, a significant 41% reduction in losses compared to the previous fiscal year
A closer examination of Flipkart Internet’s revenue streams reveals interesting trends:
- Marketplace fee income increased marginally to ₹3,734.2 crore from ₹3,713.2 crore in the previous year
- Income from collection services grew to ₹1,225.8 crore from ₹1,114.3 crore
- Notably, advertising earnings have now surpassed marketplace fees, becoming the dominant revenue source in FY24
Flipkart’s Corporate Structure and Business Expansion
Founded in 2007 by Sachin and Binny Bansal, Flipkart has evolved into India’s largest and most heavily funded e-commerce enterprise. The company operates through multiple business entities within India, each focusing on specific market segments:
- Flipkart Internet: Core e-commerce marketplace operations
- Myntra: Fashion vertical
- eKart: Logistics services
- Flipkart Health+: Healthcare technology
- Cleartrip: Travel technology
- Flipkart Wholesale: B2B online marketplace
The company continues to expand its service offerings, having recently entered the quick commerce space with Flipkart Minutes, which promises deliveries within 10-15 minutes, directly challenging established players like Blinkit, Zepto, and Instamart. Additionally, Flipkart has ventured into financial technology with super.money, further diversifying its ecosystem.
Funding History and Ownership Structure
In May 2023, Flipkart secured external funding of $350 million from tech giant Google, which valued the company at approximately $36 billion. Earlier, in March of the same year, the e-commerce leader reportedly raised $1 billion in funding from its majority owner Walmart and Google.
According to data from startup intelligence platform TheKredible, Walmart maintains the largest stake in Flipkart with approximately 85% ownership. Other shareholders include:
- Tencent
- CPP Investments
- GIC
- SoftBank
- Microsoft
The IPO Race: Flipkart, Amazon, and Meesho
The internal financial restructuring comes as Flipkart reportedly prepares for a potential initial public offering (IPO) within the next 12-15 months. According to reports, the company has received internal approval to shift its domicile back to India as part of this preparation.
As Flipkart looks toward public markets, achieving group-level profitability has become a primary focus. While most of its subsidiaries (with the exception of Myntra) continue to operate at a loss, the company has been strategically expanding into new verticals to improve its bottom line.
The e-commerce landscape in India appears to be heading toward a significant transformation, with Flipkart’s competitors also eyeing public listings:
- Amazon is reportedly considering spinning off its India operations for a local stock exchange listing
- Meesho has engaged banking advisors for a potential $1 billion IPO, expected to launch by the end of 2025
Comparative Financial Performance of Major E-commerce Players
| Company | Revenue (FY24) | YoY Growth | Loss Reduction |
| Flipkart Internet | ₹17,907.3 crore | 21% | 41% |
| Myntra | Profitable subsidiary | Not disclosed | Not disclosed |
| Amazon India | Not disclosed | Not disclosed | Not disclosed |
| Meesho | Not disclosed | Not disclosed | Not disclosed |
*Complete financial data for competitors not available in the source materials
This latest funding infusion into Flipkart Internet appears strategically timed as the company balances multiple priorities: improving profitability metrics, expanding into new verticals like quick commerce and fintech, and potentially preparing for public market scrutiny ahead of an anticipated IPO in the near future.
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