Flipkart India has received Rs 1,616.12 crore in fresh capital from its Singapore-based parent company Flipkart Private Ltd, according to documents sourced from business signals platform paper.vc.
In January, the Singapore entity had injected Rs 1,431.3 crore in Flipkart India, the wholesale arm of the e-commerce major.
The cash infusion comes ahead of a month-long festive season in India when consumers loosen their purse strings — spending on fashion to white goods and electronic items.
US-based Walmart acquired Flipkart in a $16 billion deal last year.
“Despite the large investment, the numbers are modest by e-commerce standards,” said Vivek Durai, founder at paper.vc.
“There appears to be a marked reluctance on the part of Walmart to commit more capital to India ever since the government changed the FDI rules in favour of domestic players,” Durai said.
The money sitting in Flipkart Singapore is directly controlled by Walmart. Cash is managed by Walmart as per Walmart’s SEC filings in the US, Durai explained.
Flipkart Singapore infused Rs 2,190.64 crore in December 2018, the first after Walmart’s acquisition of Flipkart.
The government’s revised FDI norms that came into effect in February bar e-commerce firms having foreign investment like Flipkart and Amazon from selling products of the entities in which they hold stake or whose inventory they control. It also disallowed them from asking a seller to sell any product exclusively on their platforms.
The rules said e-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods and services.
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