E Commerce: Flipkart’s valuation affected due to separation of phones, reduced to Rs 41 thousand crores

The valuation of e-commerce company Flipkart has declined by Rs 41,000 crore in two years. Its valuation was $ 40 billion in the financial year ending January 31, 2022, which reduced to $ 35 billion on January 31, 2024. The decline in Flipkart’s valuation is due to the splitting of PhonePe into a separate company.

Sources claim that the current valuation of Flipkart is between $38-40 billion. Its parent company Walmart had sold eight percent stake in Flipkart for $3.2 billion in the financial year 2021-22. According to this, the valuation of the e-commerce company comes to $40 billion. In 2023-24, Flipkart increased its stake in the company by 10 percent to 85 percent by paying $3.5 billion.

On the other hand, Walmart said in a statement, “We are pleased with Flipkart’s performance and are confident of its continued growth. Our recent earnings set a record high for us in international eCommerce sales. This includes Flipkart’s largest ever “This included the Big Billion Days event, which saw 1.4 billion customer visits over an eight-day period. PhonePe is now valued separately from Flipkart and the combined value of the businesses is higher than the group value referred to earlier.”