Flipkart India, the wholesale arm of the Walmart-controlled e-commerce marketplace has received Rs 2,190 crore from parent entity Flipkart Pvt Ltd.
This is the first capital infusion into the wholesale arm after Walmart acquired a majority stake in Flipkart while the marketplace unit–Flipkart Internet–received over Rs 3,462 crore in September.
According to the RoC filing with MCA accessed by paper.vc, the fresh capital came in on December 4. Earlier, the wholesale arm had got Rs 4,472 crore capital from the Singapore-based parent entity in March.
In India, Flipkart and Amazon claim supremacy over each other and have been investing huge capital to grow their businesses. During a recent study, both e-tailers have been equally rated in terms of GMV run rate for FY19.
In terms of revenue, both e-tailers have grown in the last fiscal, however, they also incurred a whopping loss during the same period.
For Flipkart, the losses of wholesale arm took an 8.5X leap going up from Rs 243.7 crore FY17 to Rs 2,062.6 crore in FY18. The revenue for the same soared by 40 per cent to Rs 21,600 crore.
Combinedly, the losses for the two units of Flipkart recorded a hike of 71 per cent from Rs 1,883 crore to Rs 3,222 crore in the latest fiscal year.
On the other hand, Amazon’s losses increased by 30 per cent to Rs 6,287 crore in the financial year ending on March 31, 2018.