Flipkart valuation Declines by more than Rs 41,000 Crore in 2 years

Flipkart attribute the fall in valuation to the demerger of fintech firm PhonePe into a separate entity.

E commerce company Flipkarts valuation has decreased by USD 5 billion as of Jan 2024 compared to that in January 2022 according to equity transactions carried out by its US based parent company Walmart.

The valuation of the e commerce company declined to 35 billion US$ as january 31, 2024 from USD 40 billion in financial year ended on January 31, 2022 as per Walmart change in equity structure in Flipkart.

Valuation Exercise

Flipkart sources added the enterprise valuation exercise was done in 2021 and total value of firm included fintech firm PhonePe valuation as well.

Flipkart’s valuation remains what it was in 2021 adjusting for PhonePe hive off a company source added.

PhonePe is now valued at over USD 12 billion after a USD 850 million fund raise from group of investors including TVS Capital Funds, Ribbit Capital, Tiger Global etc.

According to Flipkart the GMV of company raise in range of 25-28 per cent on a year old basis in range of USD 29-30 billion in 2023 as festival sales were softer in 2022.

Flipkart sources added that there is no change in organic valuation of Flipkart. Last valuation exercise was in 2021 when Flipkart raised funds. PhonePe valuation has climbed they raised funds.

Dilution in Equity

Walmart diluted 8 per cent equity in Flipkart for USD 3.2 billion FY 2022 reflecting the company value of the ecommerce at USD 40 billion.

The US retail owner in FY 2024 spiked its shareholding by 10% to 85% by paying 3.5 US$ reflecting the Flipkart valuation at USD 35 billion.

Flipkart reply the decline in valuation shown as per Walmart’s report and said it an appropriate adjustment in company valuation.

During FY the company paid USD 3.5 billion acquire shares from certain Flipkart noncontrolling interest holders and settle the liability to former noncontrolling interest holders of PhonePe.

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