The marketplace arm of Flipkart, Flipkart Internet, has secured $90 million from its Singapore-based parent entity. According to the regulatory filing, the decision was approved by the company’s board of directors on December 29, last year.
Two entities, Flipkart Marketplace and Flipkart, raised the fund; both are domiciled in Singapore. Flipkart Internet reported a 33 per cent increase in operating revenue to Rs 10,476 crore in the fiscal year 2021-2022, while losses increased to Rs 4,400 crore.
As part of its separation from digital payment unicorn PhonePe, Walmart-owned ecommerce giant will pay out approximately $700 million in cash to employee stock option holders. This comes at a time when the company is looking to hire and retain employees. Flipkart and PhonePe recently announced full ownership separation as the latter prepares for an IPO (initial public offering). The announcement came ahead of PhonePe’s multimillion-dollar fundraising round, which would be the company’s largest to date.
Flipkart announced a partial spin-off of PhonePe in December 2020 to help the platform access dedicated, long-term investment to fund its growth ambitions. Around the same time, PhonePe raised $700 million from investors including Walmart for a $5.5 billion valuation.
According to regulatory filings by Walmart in the United States, Flipkart spent $1.1 billion between February 1, 2022, and July 31, 2022. To scale up new offerings from the group, Flipkart has been investing in its business units such as grocery, social commerce vertical Shopsy, and travel platform Cleartrip. Myntra, an online fashion platform, is also run by the company.
Categories: Other News, Unicorns
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