Flipkart’s valuation has seen a significant decline of over ₹41,000 crore in just two years, attributed to various factors such as the demerger of PhonePe and strategic moves by Walmart. Despite the reported decrease, Flipkart disputes the valuation adjustment, emphasizing the positive growth trajectory. With PhonePe’s soaring valuation and promising GMV figures, industry insiders speculate Flipkart’s current worth to be higher than reported, potentially in the range of USD 38-40 billion.
Hey readers, it’s time for some hot-off-the-press news in the world of e-commerce giant Flipkart. Hold on to your seats as we delve into the recent developments that have been making waves in the business world.
So, here’s the scoop – Flipkart, valued at a whopping USD 40 billion in FY22, took a slight dip to USD 35 billion in FY24. The reason? The demerger of its mobile payments arm, PhonePe. But hold on, there’s more to the story.
Walmart, the retail giant that owns a significant chunk of Flipkart, decided to up its game. By acquiring shares from noncontrolling interest holders and settling some debts, Walmart now boasts about 85% ownership of Flipkart. Talk about a power move!
In a bit of financial maneuvering, Walmart diluted 8% equity in Flipkart back in FY22 for USD 3.2 billion. Fast forward to FY24, and they increased their shareholding by 10% for USD 3.5 billion. Looks like Walmart is playing the long game here.
But hey, Flipkart isn’t taking things lying down. They’re contesting the reported valuation decrease, arguing that it was a necessary adjustment post the PhonePe split. And speaking of PhonePe, they’re now soaring high with a valuation exceeding USD 12 billion thanks to some hefty investments.
Let’s talk numbers – Flipkart might have reported a net loss of ₹4,846 crore, but their consolidated net income stood strong at ₹56,012.8 crore in FY23. With total expenses hitting ₹60,858 crore, it’s clear that they’re playing in the big leagues.
Rumor has it that Flipkart’s current valuation could be in the range of USD 38-40 billion, a figure that insiders believe is a more accurate reflection of their growth trajectory. With a significant boost in Gross Merchandise Value (GMV) in 2023, the future looks bright for this e-commerce titan.
So, there you have it, folks – the latest buzz surrounding Flipkart and its ever-evolving saga. Stay tuned for more updates as this story continues to unfold in the dynamic world of online retail.