Flipkart India raises Rs 1,431 crore from parent firm
New Delhi: Flipkart India, the wholesale arm of Walmart-owned e-commerce company Flipkart, has received about Rs 1,431 crore from its Singapore-based parent, according to documents filed with the Corporate Affairs Ministry.
The parent entity was issued 4.86 lakh shares in Flipkart India at a price of about Rs 29,400 per share, the documents showed. Flipkart had invested Rs 2,190 crore in Flipkart India in December last year.
The latest fund infusion comes at a time when Flipkart faces challenges on the regulatory front in the form of new policy norms for e-commerce firms with foreign investment.
The new rules — effective from February 1 — bar online marketplaces with foreign investments from selling products of the companies where they hold stakes, and ban exclusive marketing arrangements.
Another provision states that the inventory of a vendor will be seen as controlled by a marketplace, if over 25 per cent of the vendor’s purchases are from the marketplace entity, including the latter’s wholesale unit. Both Amazon and Flipkart have approached the government seeking extension on the deadline.