Flipkart Internet, the marketplace arm of Walmart-owned Flipkart, has secured INR 533 crore ($62 million) from its Singapore-based parent entity, Flipkart Marketplace Private Limited, and subsidiary Quickroutes International Private Limited. This marks the second major infusion in 2025 after a INR 3,248.9 crore ($379 million) injection earlier this month.
IPO Preparations in Full Swing
The funding comes as Flipkart accelerates plans for its highly anticipated IPO and shifts its headquarters from Singapore to India. The relocation aligns with its commitment to India’s digital growth and follows similar moves by PhonePe, Groww, and Pine Labs. Flipkart aims to file its DRHP (Draft Red Herring Prospectus) in the coming months.
Financial Health and Revenue Growth
- FY24 Performance: Flipkart Internet reported INR 17,907.3 crore in revenue, up 21% YoY, while narrowing losses by 41% to INR 2,358 crore.
- Revenue Sources: Seller commissions and advertising drive income, with ad revenues surpassing marketplace fees in FY24.
Quick Commerce Expansion
Flipkart is aggressively scaling Flipkart Minutes, its 10–15 minute delivery service, targeting 800 dark stores by 2025-end to rival Blinkit, Zepto, and Swiggy Instamart. Amazon India is also entering this $6 billion+ sector, intensifying competition.
Reverse Flip Trend Gains Momentum
Flipkart joins a growing list of startups relocating to India ahead of IPOs, driven by:
- Easing Regulations: Simplified compliance for domiciled companies.
- Investor Confidence: Strong public market response to 2024 IPOs like Ola Electric, Swiggy, and MobiKwik, which raised INR 29,000 crore+.
- Upcoming Listings: Meesho, Zepto, and Physics Wallah are among 20+ startups eyeing 2025 IPOs.
Funding Recap and Investor Profile
- 2024–25 Infusions: Flipkart Internet received $665 million+ from Singapore entities since March 2024, including $281 million in 2024 and $441 million in 2025.
- Major Backers: Walmart (85% stake), Tencent, Google, and SoftBank.
Challenges and Cost-Cutting Measures
Flipkart’s board has directed CEO Kalyan Krishnamurthy to halve monthly cash burn from $40 million to $20 million to improve profitability. While Myntra remains profitable, other subsidiaries like eKart and Flipkart Health+ are still loss-making.
The Road Ahead
With Meesho targeting a $1 billion IPO and Amazon entering quick commerce, Flipkart’s focus on cost efficiency, dark store expansion, and ad revenue will be critical. Its reverse flip could set a benchmark for other startups navigating India’s evolving regulatory landscape.
Flipkart’s strategic moves reflect India’s booming e-commerce sector, projected to hit $350 billion by 2030. As IPO fever grips startups, Flipkart’s success could redefine India’s digital economy.