E-commerce firm Flipkart’s valuation has declined by USD 5 billion or around Rs 41,000 crore as of January 2024 compared to that in January 2022, according to equity transactions carried out by its US-based parent firm Walmart.
The valuation of the e-commerce firm declined to USD 35 billion as of January 31, 2024, from USD 40 billion in the financial year ended on January 31, 2022, as per Walmart’s change in equity structure in Flipkart.
Flipkart attributed the decline in valuation to the demerger of fintech firm PhonePe into a separate company. Sources, however, peg the current valuation of Flipkart in the range of USD 38-40 billion.
Walmart diluted 8 per cent equity in Flipkart for USD 3.2 billion in fiscal year (FY) 2022 reflecting the enterprise value of the e-commerce at USD 40 billion.
The US retail giant in FY2024 increased its shareholding by 10 per cent to approximately 85 per cent by paying USD 3.5 billion, reflecting the enterprise valuation of Flipkart at USD 35 billion.
“During fiscal 2024, the company paid USD 3.5 billion to acquire shares from certain Flipkart noncontrolling interest holders and settle the liability to former noncontrolling interest holders of PhonePe.
