BENGALURU: In the run-up to the annual festive sale of the year, Flipkart India, the wholesale arm of the Walmart-owned ecommerce marketplace, has received Rs 1,616 crore from its Singapore-based parent entity, regulatory filings show.This is the second fund infusion after January, when Flipkart pumped Rs 1,431 crore into the wholesale unit, which purchases goods in bulk from manufacturers and sells them to preferred sellers.
Regulatory filings made with the Ministry of Corporate Affairs showed that Flipkart India allotted 4,64,403 equity shares to its parent entity at Rs 34,800 per share.
ET reported that Flipkart is aiming to clock sales worth $3 billion during the festive period this year, with the BigBillionDays sale happening from September 29 to October 4.
In an email sent to select brands, Flipkart said it planned to launch special products during the Big Billion Days sale, with some packaged as Flipkart exclusives, create buzz and intrigue with pre-orders, contests, cross-sell across different categories, and do a few select trial generation deals priced at Rs 49/ Rs 99.
The company has also offered brands to tap 50-70% off and ‘buy one, get one free.’ For some of these exclusive launches and BBD branded products. Flipkart India is buying inventory from brands, said two brands that ET spoke to.
Wholesale units of ecommerce marketplaces have come under the scanner following a revision in the foreign direct investment rules for the sector in December. The introduction of a 25% cap on the goods sellers can purchase from an ecommerce company or its affiliates had caught both Flipkart and Amazon off guard.
While this caused some temporary disruption in sales, both firms told their investors that they did not see too much of a slide in sales due to the new regulations. While Flipkart and Amazon continue to use their B2B units for sourcing, a large part of the inventory is sent by brands directly to preferred sellers.
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