According to E-Commerce major Flipkart has burnt cash of $3.7 Billion (About Rs 30,000 crore) in about a year ending September 2022, according to regulatory fillings. Comparatively it is the biggest cash burn company in a year by any new-age company in the country according to industry estimates. It had $1 billion in cash in July 2021, which suddenly came down to $887 million by September 2022.
Flipkart in July 2021, raised $3.6 billion (about ₹29,000 crore), which has been completely exhausted, according to regulatory filings of Flipkart and Walmart. Walmart regulatory filing shows that the Flipkart company had approximately $1.1 billion in July 31, 2022.
As per the regulatory filings “Of the $3.5 billion on July 31, 2022, approximately $1.1 billion can only be accessed through dividends or intercompany financing arrangements subject to the approval of the Flipkart minority shareholders; however, this cash is expected to be utilised by Flipkart“
Flipkart said that as of January 31,2022 and July 31,2022 cash and cash equivalents of $4.3 billion and $3.5 billion respectively, shall not be freely transferable to the U.S due to local laws or other restrictions. A Flipkart spokesperson said that it is important to understand the numbers in the right context, especially given the many investments that Flipkart has made in the last year.
These include investing in or launching new business such as Flipkart Health+, Cleartrip and ANS Commerce. By investing in these areas, the company is able to create new employment opportunities, strengthening there deep and expansive supply chain that generates more than 200,000 employment opportunities. By Building strong technology capabilities such as image search, live commerce, a revamped UX interface and many more. Which in turn provides more opportunities for growth of E-Commerce ecosystem in India and for more than 11 lakh sellers, including MSMEs and deeper value to the customers.
Flipkart in July 2021, announced raising $3.6 billion. In August 2021, the firm invested $1.42 billion in various arms just ahead of the festive season. The residual amount of $2.8 billion after the investments, which made in these entities was reflected in Walmart’s filling for the October 2021 quarter.
Further, Flipkart infused $589 million in Flipkart India Private Limited, $412 million in Instakart, which holds the logistics EKart business of flipkart,$353 million in the business-to-consumer unit Flipkart Internet Private Limited, and $66 million in Myntra Designs and Myntra Jabong India. Flipkart also invested $600 million in inorganic growth with investments in companies like Ninjacart and ANS Commerce in December 2021, $70 million in EKart, which left with a cash balance of $2.2 billion in January 2022, $300 million in Flipkart India according to the regulatory filling.
Flipkart Group Singapore entity Flipkart Private Limited invested an amount of Rs 1,590 crore about $200 million at present exchange rate in its business to business vertical Flipkart India, formerly Walmart Wholesale.
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