Flipkart India Private Limited, wholesale arm of Flipkart has got a massive infusion of Rs 4,472 crore from its Singapore parent (Flipkart Limited, Singapore), Registrar of Companies documents showed. The development was first spotted by the data platform Paper.vc.
The infusion arms Flipkart to battle Amazon in India. In January, Amazon India (Amazon Seller Services Pvt. Ltd) received Rs 1950 crore from its parent Amazon Inc. (US) and Amazon Singapore. The investment came two months after Amazon infused Rs 2900 crore in Amazon India. Note that, Amazon has a total investment commitment in India of $5 billion (approx Rs 32600 crore)- $3 billion the company committed in June last year, plus $2 billion investment announced back in July 2014, which the company has already exceeded.
Flipkart is not only focusing on its e-commerce business. It has been pumping in funds into different parts of its operations and trying to match up to Amazon’s funding power. In August last year, Flipkart raised funding to the tune of $2.5-2.6 billion from SoftBank’s $100 billion Vision Fund, and $1.4 billion from Microsoft, eBay and Tencent in April. In October 2017, Flipkart committed $500 million in its payments am PhonePe, which is an addition to $75 million funds infusion Flipkart had made in PhonePe since acquiring it in 2015. And then it injected Rs 961.4 crore in Instakart Services Pvt. Ltd., which operates its logistics arm eKart.