Flipkart's Valuation Dips Over Rs 41,000 Crore in Two-Year Span

In a recent revelation, it has come to light that the valuation of Flipkart, one of India's leading ecommerce platforms, has undergone a significant decline over the past couple of years. According to equity transactions conducted by its parent company Walmart, Flipkart's valuation has plummeted by a staggering $5 billion, roughly equivalent to around Rs 41,000 crore, from January 2022 to January 2024. This decline is substantial, with Flipkart's valuation dropping to $35 billion by January 31, 2024, from $40 billion in the previous financial year. The adjustment in valuation is attributed to Walmart's restructuring of equity within Flipkart, particularly concerning the demerger of its fintech arm, PhonePe, into a separate entity.

Despite the apparent decrease in valuation as per Walmart's records, Flipkart has contested this interpretation, deeming it an "appropriate adjustment" following the separation of PhonePe. The company maintains that the PhonePe separation was finalized in 2023, resulting in a valuation adjustment for Flipkart. This perspective challenges Walmart's valuation narrative, indicating a discrepancy in the perceived value of the ecommerce giant.

Walmart's actions in the fiscal year 2024 shed further light on the dynamic nature of Flipkart's valuation. The retail giant augmented its shareholding in Flipkart by 10 percent, amounting to approximately 85 percent ownership, through a substantial investment of $3.5 billion. This strategic move underscores Walmart's continued confidence in Flipkart's potential despite the apparent decline in valuation.