Flipkart: The valuation of e-commerce company Flipkart has decreased by five billion US dollars or approximately Rs 41,000 crore in two years. This information has been received from the equity transactions of its American-based parent company Walmart. According to the change in Walmart’s equity structure in Flipkart, the valuation of the e-commerce company was $ 40 billion in the financial year ending January 31, 2022, which came down to $ 35 billion as of January 31, 2024.
Flipkart has attributed the decline in valuation to the split of financial technology company PhonePe into a separate company. However, sources say that the current valuation of Flipkart is between $38-40 billion.
Walmart had sold eight percent stake in Flipkart for $3.2 billion in the financial year 2021-22. According to this, the valuation of the e-commerce company comes to $40 billion.
In the financial year 2023-24, the American retail giant increased its stake in the company by 10 percent to 85 percent by paying $3.5 billion. Based on this, the enterprise value of Flipkart comes to $35 billion.
However, Flipkart has rejected the reduction in valuation as per Walmart’s report and said that it is due to ‘appropriate adjustment’ in the company’s valuation.
A Flipkart spokesperson said, “This explanation is incorrect. The work of separating PhonePe was completed in 2023. This led to appropriate adjustment in the valuation of Flipkart. Sources at Flipkart said the valuation of the venture was last done in 2021 and at that time the valuation of fintech firm PhonePe was also included in the total value of the e-commerce company. PhonePe’s valuation has now reached $12 billion after raising $850 million from investor group General Atlantic, Tiger Global, Ribbit Capital and TVS Capital Funds etc. With PTI language input.
Also Read: POCO brings 5G phone with 108MP camera in a budget of less than Rs 15 thousand, sale starting at 7 pm on Flipkart