E-commerce platform Flipkart has received an SGD 310 million (USD 225 million or INR 1,616 crore) infusion from its Singapore-based parent, Flipkart Private Limited, which is owned by US supermarket chain Walmart.
According to Indian Ministry of Corporate Affairs filings, wholesale arm Flipkart India issued 464,403 equity shares to its Singapore entity at a premium of INR 34,799 with a nominal value of INR 1.
The development comes at a time when e-commerce marketplaces are gearing up for Diwali season sales and may provide the deep pockets needed to allow the company to slash a percentage of its margins to meet consumers’ demand for lower costs through deals and discounts.
Amazon and Flipkart have recently reached out to select top sellers, offering to cut commissions across categories to bring prices down to help these companies boost festive season sales.
They are reportedly offering major waivers across categories such as fashion, accessories and consumer electronics. Commissions typically differ within sub-segments in fashion or consumer electronics.
Flipkart India received USD 200.8 million from Flipkart Private Limited in January this year.