Net sales increased by 1.3% year-on-year to $29.2 billion in Q3FY20. “We are excited about what's happening at Flipkart and PhonePe.
Flipkart India has received Rs 2,838.84 crore in fresh capital from its Singapore-based parent Flipkart Private, the largest fund infusion this calendar year, according to documents sourced from business signals platform Paper.vc.
In September, Flipkart India, the wholesale arm of the e-commerce major, had received Rs 1,616.12 crore from its parent firm, while in January the Singapore entity had injected Rs 1,431.3 crore in the company.
Flipkart and Amazon jointly hold close to 80% market share in the domestic e-commerce segment, according to analysts. Both the companies claimed to have bigger festive sales this year.
According to a report by market research firm RedSeer Consulting, both the firms registered an estimated $3 billion in gross sales during the six-day sale period starting September 29.
Losses, nonetheless, have been ballooning for e-commerce firms. Flipkart India’s losses increased by 86% year-on-year to Rs 3,835.3 crore in FY19, the company’s RoC filings showed.
In May last year, Walmart announced purchase of a 77% controlling stake in Flipkart in a $16-billion deal, valuing the e-commerce firm at around $21 billion.
Last month, Walmart said its international segment recorded a “solid sales growth” in the July-September quarter driven by Flipkart. Net sales increased by 1.3% year-on-year to $29.2 billion in Q3FY20. “We are excited about what’s happening at Flipkart and PhonePe. The Indian market represents a significant opportunity for growth,” Doug McMillon, president & CEO, Walmart, had said.
The money sitting in Flipkart Singapore is directly controlled by Walmart. Cash is managed by Walmart as per Walmart’s SEC filings in the US, analysts said. Flipkart Singapore infused Rs 2,190.64 crore in December 2018, the first after Walmart’s acquisition of Flipkart.
Under Walmart, Flipkart is expanding into the food retail segment — last month, it registered a firm, Flipkart FarmerMart to undertake the business.
Leveraging Walmart’s established network of supply chain, vendors and logistics, the e-commerce firm will be able to get a leg up in the crowded space and ramp up the business quickly, analysts said.