Flipkart's Valuation Plummeted by Over INR 41,000 Cr in Two Years

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Flipkart's Valuation Decreases by Over INR 41,000 Crore in Two Years


E-commerce giant Flipkart has experienced a significant decline in valuation, dropping by $5 billion (approximately INR 41,432 crore) from January 2022 to January 2024. This decrease is attributed to equity transactions conducted by its parent company Walmart.




As of January 31, 2024, Flipkart's valuation stands at $35 billion, down from $40 billion in the fiscal year ending January 31, 2022. This shift in valuation is a result of Walmart's restructuring of equity in Flipkart, with Flipkart citing the demerger of fintech firm PhonePe as a primary reason for the decline.

Despite Walmart's reported valuation, Flipkart sources suggest that the actual valuation may range between $38-40 billion. Walmart's equity dealings with Flipkart reveal a dilution of 8% equity for $3.2 billion in FY2022, indicating an enterprise value of $40 billion. However, in FY2024, Walmart increased its shareholding by 10%, reaching approximately 85% ownership, at an enterprise valuation of $35 billion.

Flipkart responded to Walmart's valuation adjustment, clarifying that the PhonePe separation occurred in 2023, prompting an appropriate adjustment in Flipkart's valuation. According to Flipkart sources, the last valuation including PhonePe was conducted in 2021, with no recent valuation exercise taking place.

Despite the reported decrease in valuation, PhonePe's value has soared to over $12 billion following a successful $850 million fundraising round. Flipkart's Gross Merchandise Value (GMV) has also seen substantial growth, ranging from 25-28% year-over-year and reaching $29-30 billion in 2023, contributing positively to its valuation.

Meanwhile, Flipkart India Private Ltd reported a 9% increase in operating revenue to INR 55,823.9 crore in FY23, alongside a net loss rise to INR 4,845.7 crore, marking a 1.4X increase from INR 3,404.3 crore in FY22.

Disclaimer: The information provided in this summary is based on publicly available sources, and any financial decisions should be made after consulting with relevant experts and conducting thorough research.

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