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Flipkart’s $201 Million Cash Injection

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By Published On: January 21, 20190 Comments

As Walmart-owned Flipkart fights to fend off Amazon and keep afloat amidst tougher e-commerce regulations, the Indian-based business finalises a deal worth US$201 million.

The company’s Singapore-incorporated parent, Flipkart Pvt has reportedly outlay ₹ 1,431 crore or $201 million into its wholesale entity in India. The fund infusion was originally signed off on in December 2018. Regulatory findings from Paper.vc have also revealed that the Singapore-listed entity invested $304 million into its Indian branch late last year.

Flipkart first sought fresh capital in October 2018, holding talks with big international corporations like Google. However, when discussions with the global tech business fell through, the Indian marketplace sought funding elsewhere.

The cash injection comes as the business looks to continue improving its overall sales. In an interview late last year, Flipkart’s CEO, Kalyan Krishnamurthy said the business had experienced a transaction growth of “more than 80 percent” in the matter of months, with plans in place to push its new categories, including furniture and groceries.

It’s believed that Flipkart will spend as much as $2 billion expanding its Indian operations in the next 18-months. Meanwhile, US-based competitor Amazon is also ramping up its own local operations, quickly burning through its initial $5 billion investment in India’s booming e-commerce sector.

Earlier predictions have estimated that India’s e-commerce market could be worth as much as $200 billion by 2026.

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