18 March 2024 – According to Walmart’s equity transactions, Flipkart’s worth fell $5 billion, or Rs 41,000 crore, in January 2024 compared to January 2022. The e-commerce company’s valuation fell to $35 billion on January 31, 2024, from $40 billion in 2022. This drop is due to PhonePe’s demerger. However, Flipkart’s valuation is estimated at $38-40 billion.
Walmart diluted 8% of Flipkart stock for $3.2 billion in FY2022, valuing it at $40 billion. In FY2024, Walmart paid $3.5 billion to raise its shares by 10% to 85%, valuing them at $35 billion. Walmart also spent $3.5 billion to raise its Flipkart stake from 75% to 85% in FY2024.
“In fiscal 2024, the company paid $3.5 billion to acquire shares from Flipkart noncontrolling interest holders and settle PhonePe liability. Walmart stated its ownership of Flipkart rose from 75% on January 31, 2023, to 85% on January 31, 2024. Flipkart disagrees with Walmart’s valuation fall and sees it as a fair adjustment, especially after PhonePe’s 2023 separation.
Conclusion
This interpretation is wrong. Flipkart’s valuation was adjusted after the PhonePe separation in 2023, “PTI stated a Flipkart spokesperson. Flipkart’s organic valuation is unchanged, sources said. PhonePe raised $850 million from investors and is currently worth $12 billion. Flipkart’s 2023 GMV growth of 25-28% is projected to improve its worth.