 "Flipkart's valuation is likely to increase by 5-10 per cent")
E-commerce company Flipkart is in talks to raise $1 billion and its owner Walmart has committed to providing $600 million out of the total, the Economic Times (ET) reported on Thursday citing people aware of the matter.
The report added that the fundraising is likely to increase the company's valuation by 5-10 per cent from $33 billion earlier. It was valued at $33 billion when it announced a split from PhonePe.
The news of funding comes at a time when Flipkart is struggling to contain losses despite healthy sales, especially during the festive season. During its The Big Billion Days (TBBD) 2023 sale, the company had recorded 1.4 billion customer visits, the highest to date.
In October, business intelligence platform Tofler reported that Flipkart India reported a 45 per cent increase in net loss at Rs 4,890.6 crore during 2022-23, against Rs 3,371.2 crore in the previous financial year.
Tofler's data also showed that Flipkart's consolidated revenues for FY23 were at Rs 56,013 crore, 9 per cent higher than in FY22. The firm’s expenses for the financial year were reported at Rs 60,858 crore, an increase of 11.5 per cent from Rs 54,580 crore in the previous one. This included costs such as the purchase of stock in trade, employee-benefit expenses, and those related to finance.
During FY23, Flipkart also made several portfolio investments spending over Rs 169 crore. These include Kalyr Retail (22 per cent acquisition), Fonte Fashions (19 per cent acquisition), and Logisticsnow. Other such investments include Neuropixel.AI Labs, Health Arx Technologies, and Meradawai.
