Flipkart’s two-year value fall of roughly Rs 41,000 cr
As of January 2024, Flipkart’s worth has decreased by USD 5 billion, or around Rs 41,000 crore, from its January 2022 valuation, based on stock transactions conducted by its US-based parent company Walmart.Due to Walmart’s modification of the Flipkart shareholding structure, the e-commerce company’s value dropped from USD 40 billion at the conclusion of the fiscal year to USD 35 billion as of January 31, 2024. Flipkart ascribed the decrease in value on PhonePe, a fintech startup, being demerged into a distinct entity.
However, sources estimate Flipkart’s current worth to be between USD 38 and $40 billion.In fiscal year 2022, Walmart paid USD 3.2 billion for 8% of Flipkart’s stock, which represents the e-commerce company’s USD 40 billion enterprise value.The US retail behemoth paid USD 3.5 billion to expand its stake by 10% to around 85% in FY2024, reflecting Flipkart’s USD 35 billion enterprise value.
“The business spent USD 3.5 billion to resolve the debt to former PhonePe noncontrolling interest holders and to purchase shares from certain Flipkart noncontrolling interest holders during the fiscal year 2024. According to Walmart, the company’s stake in Flipkart grew from around 75% as of January 31, 2023, to over 85% as of January 31, 2024.Flipkart, on the other hand, disputed the Walmart report’s depiction of a decline in worth, calling it a “appropriate adjustment” to the company’s valuation.
“This reading is not accurate. After PhonePe was separated in 2023, Flipkart’s value was appropriately adjusted, according to a Flipkart representative.According to Flipkart insiders, the enterprise valuation was last completed in 2021, and PhonePe, a fintech company, was included in the firm’s overall worth.According to the source, Flipkart’s organic value has not changed.The most recent value was done in 2021 when Flipkart received capital. Since then, Flipkart has split out PhonePe at a certain valuation (according to 2021 value). Since they received money, PhonePe’s value has improved (the valuation process is part of the cash raise). After accounting for the PhonePe spinoff, Flipkart’s value is still the same as it was in 2021, according to a corporate source.
After raising USD 850 million from a consortium of investors that included General Atlantic, Tiger Global, Ribbit Capital, TVS Capital Funds, and others, PhonePe is now valued at over USD 12 billion.The Flipkart source claims that despite weaker festival sales in 2022, the company’s GMV increased dramatically in 2023, rising by 25–28% on an annual basis to USD 29–30 billion.Flipkart’s current value is projected to have grown due to the expansion in GMV.In actuality, given the rise in GMV (gross merchandise value) and approaching profitability, the valuation of Flipkart would have been closer to USD 38–40 billion if it had been done today. However, Flipkart hasn’t conducted a similar assessment process since 2021, according to the source.In FY23, Flipkart reported consolidated net total revenue of Rs 56,012.8 crore and a net loss of Rs 4,846 crore. The company’s total costs for the fiscal year under review came to Rs 60,858 crore.
