E-commerce player Flipkart India, the B2B wholesale arm of the Walmart-owned online shopping platform, has received another substantial capital infusion from its Singapore-domiciled parent firm, according to regulatory filings.
The documents show that the capital infusion is the third such funding measure by the parent firm this year, which poured in Rs 2,839 crore into Flipkart India. This takes the total fund infusion in the Indian firm from the parent company to Rs 5,701 crore this year.
According to regulatory filings, Flipkart received the fund infusion through an allotment of 8,115,761 shares at a premium of Rs 34,799 per share. The Flipkart wholesale unit had received Rs 1,431 crore and Rs 1,616 crore in January and September this year respectively.
Flipkart India purchases goods in bulk from manufacturers and brands and sells them to its B2B partners or preferred sellers. These vendors then list these goods on the marketplace. The operations are similar to the system carried out by Amazon, which operates a wholesale unit called Amazon Wholesale India.
The investment comes at a critical phase in the sales calendar, with the platform gearing up for the last big sale of the current year.
Capital infusions from deep-pocketed parent firms are important for e-com majors, who foot substantial bills while driving their mega sale offers. A deep war chest also helps in standing up to the intense competition these firms face during peak festival season.
Flipkart India purchases goods in bulk from manufacturers and brands and sells them to its B2B partners or preferred sellers. These vendors then list these goods on the marketplace.