Flipkart marketplace platform has received $62 million from parent entity Flipkart Pvt. Ltd, taking the total fund infusion from the holding entity to $1.88 billion.
Flipkart Pvt. Ltd, where Walmart is a majority stakeholder, operates Flipkart’s marketplace, logistics unit and digital payments platform PhonePe. During the same round, PhonePe also received $28 million from the Singapore-based parent entity, according to an ET report citing regulatory filings.
The fresh capital infusion for the e-commerce giant has come at a time when their majority part of the business isn’t operational. Since the government has barred movement of non-essential items via e-commerce, the firm has been operating only grocery delivery vertical Supermart.
During the lockdown period, the revenue of Flipkart has been reduced by over 90%.
Amidst limitations set by the government, Flipkart has also demanded gradual opening up of non-essential goods delivery through e-commerce. According to the Bengaluru-based entity, it will help meet consumer demand as well as ease the burden of piled up inventory of micro, small and medium enterprises.
The revenue is expected to fall further if e-commerce firms are barred from selling non-essentials post May 3. The ongoing lockdown will be continued until May 3 and it’s likely that the government may open up restrictions in cities where the spread of pandemic isn’t increasing.
Flipkart arch-rival Amazon and Snapdeal have also urged the government to allow it to deliver no-essential items as well.
“E-commerce offers the safest way to ensure social distancing, saving lives and livelihoods. We urge the government to allow us to deliver all products (not just essentials) that citizens need over a prolonged period so that they can stay safe, while simultaneously jump-starting MSMEs,” said Amit Agarwal, Amazon India head via Twitter.