Leading e-commerce company Flipkart has suffered a significant setback. The company’s market value has decreased by approximately Rs 41 thousand crore (5 billion dollars) in the last 2 years. This figure is between January 2022 and January 2024. This information was obtained from equity transactions done by Flipkart’s parent company, Walmart. This decline occurred because Flipkart made its fintech firm PhonePe a separate company.
Decrease Due To Removal Of PhonePe From Flipkart
According to the information received from the changes made in the equity structure by Walmart, the valuation of Flipkart was $40 billion in the financial year ending January 31, 2022, which was reduced to $35 billion on January 31, 2024. This decrease has come due to the removal of PhonePe from Flipkart.
However, sources have claimed that Flipkart’s market value is currently around $40 billion. Walmart sold an 8 per cent stake in the fiscal year 2022 for about $3.2 billion. American retail giant Walmart increased its stake in the company by 10 per cent to 85 per cent by paying $ 3.5 billion in Flipkart in the financial year 2023-24.
It Is Wrong To Look At Market Value This Way – Flipkart
On the other hand, Flipkart has rejected the valuation based on Walmart’s report. Flipkart spokesperson said that looking at the market value this way is wrong. We had separated PhonePe in the year 2023. Due to this, there has been an adjustment in the market value.
According to sources, the company’s last valuation was done in 2021. At that time, the valuation of fintech firm PhonePe was also included in the total value of the e-commerce company. There has been no reduction in the valuation of the company. The market value of PhonePe is currently estimated at $12 billion by General Atlantic, Tiger Global, Ribbit Capital and TVS Capital Fund.
There Was A Net Loss Of Rs 4,846 Crore Last Financial Year
Flipkart had a net loss of Rs 4,846 crore in FY 2023. Also, the total income of the e-commerce company was Rs 56,012.8 crore. The company’s total expenditure in the last financial year was Rs 60,858 crore.
