According to regulatory documents, Flipkart Internet, which is the marketplace arm of Flipkart, has received a capital infusion of more than Rs.3,462 crore from Flipkart Marketplace in Singapore. This is the single largest fund infusion received by the Walmart-owned online retailer.
The capital infusion comes just ahead of the sale season which will see the online retailer offering deals and discounts to its customers. Documents that were sourced from Paper.vc, a business data website, show that the allotment of the company’s shares was done on 30 August 2018.
Amazon India, which is one of Flipkart’s biggest competitors in India, has pumped in nearly Rs.5,400 crore into its Indian business arms that are involved in the e-commerce sector, during the past few months.
The Diwali festival season is a significant period for online retailers since a chunk of the annual sales of these companies are generated during this period. The festive season also brings in customers who are relatively new to online shopping.
In an effort to increase its customer base and boost the overall sales, Flipkart has come up with a number of initiatives and programmes such as enhancing the affordability of products, faster product delivery, offering mobile protection to smartphone buyers, and so on. The online retailer has also said that it will be increasing its collection of international labels and adding exclusive partnerships in the next few months. Flipkart generates a chunk of its sales from large appliances, smartphones, and apparel/accessories during its annual festive sale.
In India, a majority of the festive season sales are generated by Flipkart and Amazon. Online retailers like Paytm Mall have also been trying to boost their presence in the segment over the past few years.
Sources: The Times of India, Livemint