Flipkart, India’s largest online e-tailer has burned nearly $1 billion since the US retail monster Walmart acquired around 77 per cent stake in it, reported ET. The development from the California-based retail giant came amidst when the Indian aggregator is aggressively trying to overtake its rival Amazon which has maximum control over the Indian market.
“Of the $2.7 billion in cash globally was not freely transferable to the US, however, approximately $1.2 billion can only be accessed through dividends or intercompany financing arrangements subject to approval of the Flipkart minority shareholders,” Walmart said in a regulatory filing, citing ET.
Whereas, last week, Walmart revealed that Flipkart has $1.2 billion in cash and cash equivalents on its books as of April 30.
Flipkart, owned by Walmart, is based out of Bengaluru, founded by Sachin Bansal and Binny Bansal together in 2007. The company initially focused on book sales, before expanding into other product categories such as consumer electronics, fashion, and lifestyle products.
Walmart, owned by Walton family, is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. It came into existence in 1962 by Sam Walton.
Besides, according to the report by ET on March 30, Walmart had attributed 77% of Flipkart’s assets to intangibles and goodwill, highlighting the premium the US retailer had paid to get a foothold in India’s e-commerce market.