With the growing trend of e-commerce companies dipping their toes into the wholesale market, Flipkart India has received yet another infusion of funds from its Singapore-based parent company.
Regulatory filings show that the wholesale arm of the Walmart-owned e-commerce player received Rs. 2,830 crore, taking the total up to Rs. 5,701 crore.
The third such investment this year comes as the e-commerce giant gears up for its last sale of the season – Big Shopping Days. An investment of Rs. 1,431 crore was received in January, followed by an infusion of Rs. 1,616 crore in September.
Flipkart India sells goods procured in bulk from manufacturers and sellers, to undisclosed B2B partners or sellers. These partners in turn list the goods on the marketplace.
Amazon India is not far behind with their own Wholesale unit, Amazon Wholesale India.
This festive season, both e-commerce giants had a combined sale of whopping US $ 4.3 billion. Flipkart was responsible for 64 per cent of the combined gross sales, while Amazon reported higher in net promoter score (NPS), a measure of the loyalty of consumers to a company.
The Government has forbid e-commerce marketplaces from controlling their inventory by owning sellers.
This was intended to obstruct the practice of predatory pricing and the revised regulations came into effect in February this year.
Flipkart Ltd., the parent of Flipkart India, reported consolidated revenue of Rs. 43,615 crore for the financial year ended 31 March, up 42 per cent compared to last year.
