According to the equity transactions of its parent company, Walmart, one of India’s biggest e-commerce platforms, Flipkart, has lost around $5 billion in the last 2 years. The company’s valuation fell from $40 billion in 2022 to $35 billion in 2024.
Experts say the decline can be attributed to the demerger of fintech PhonePe, which has become a standalone company. It is estimated that Flipkart’s current valuation is between $35 and $38 billion.
Walmart said in a statement, “During fiscal 2024, the company paid $3.5 billion to acquire shares from certain Flipkart non-controlling interest holders and settle the liability to former non-controlling interest holders of PhonePe. The company’s ownership of Flipkart increased from approximately 75 per cent as of January 31, 2023, to approximately 85 per cent as of January 31, 2024”
However, Flipkart has disputed the low valuation claims of the parent company, Walmart. A Flipkart spokesperson said, “This interpretation is incorrect. The PhonePe separation was completed in 2023, which saw an appropriate adjustment in Flipkart’s valuation.”
Many sources claim that Flipkart’s organic valuation remains unchanged. Also, PhonePe’s valuation has reached $12 billion after they secured around $850 million in funding. One of the sources said, “ In reality, if the valuation were to be done now for Flipkart, it would have gone by to the vicinity of $38-40 billion considering the growth in GMV (Gross merchandise value) and near profitability. But no such valuation exercise has happened for Flipkart since 2021.”
