India, the wholesale entity of the Walmart-backed e-commerce company, has received Rs 2,838.84 crore from its Singapore-based parent entity, Flipkart.
The investment comes at a time when the government is coming up with National E-commerce Policy
that could have a huge impact on online retailers such as Flipkart
According to the company’s regulatory filings, Flipkart’s parent entity was issued 815,761 equity shares through a rights issue at a premium of Rs 34,799 per share. The board of directors of Flipkart India passed this resolution on November 28.
In September this year, Flipkart India received Rs 1,616 crore and in January it obtained Rs 1,431 crore from its Singapore-based parent entity. The funding is expected to help Flipkart take on the Jeff Bezos-led Amazon, with which it is in a fierce battle for dominance in India’s online retail market as well as competition from the yet to be launched e-commerce business of Mukesh Ambani-led Reliance Industries.
In October this year, Amazon infused about Rs 4,472.5 crore in its various business entities in India, including seller services, digital payments, and retail. The e-commerce market in India is expected to touch $200 billion by 2028, from about $30 billion last year.