Ahead of the festive season and Big Billion Days sale, Flipkart has invested Rs 3,463 crores into its online marketplace Flipkart Internet, reports Business Today. The fund infusion was done in two stages, “In accordance with the Letter of Offer dated 14 August, 2018 circulated by the company for the rights issue of shares, the board of directors of the company be and hereby allot 14,57,598 Class A equity shares…for an amount aggregating to Rs 30,07,02,46,740 for cash to Flipkart Marketplace Private Ltd, Singapore,” the documents from the Ministry of Corporate Affairs state.
The Walmart-backed giant also approved 2.21 lakh right issue shares for cash to Flipkart Marketplace, Singapore. This is the first large cash infusion into Flipkart’s businesses ever since Walmart acquired a majority stake in group for $16 billion.
Competition from Amazon
- In July, Amazon pumped in a fresh round of Rs 2700 crore in Amazon India (Amazon Seller Services Pvt. Ltd), just 4 months after raising the exact same amount. It also invested Rs 100 crore in its food retail business (Amazon Retail India Pvt. Ltd), a top up to the Rs 10.5 crore it invested in June.
- Amazon infused Rs 230 crore in its Indian payments arm, Amazon Pay, again in July. Amazon Pay’s India Head Mahendra Nerurkar had earlier this year said that the company will continue to invest aggressively in its digital payments arm over the next several months.
Flipkart’s investments and service launches
- In August, Singapore-based Flipkart Payments, which is a subsidiary of the e-commerce giant infused Rs 451.66 crore into PhonePe.
- Flipkart is attempting to diversify into refurbished goods with newly-launched marketplace 2GUD, after shutting down operations of eBay.in.
- The e-commerce giant is also eyeing grocery service market; in August, it launched Supermarket in Bangalore, after a failed bet on Nearby, which it shut down 2 years ago.
- Flipkart launched a loyalty programme called Flipkart Plus in August.