Flipkart has invested a combined $90 million into its marketplace entity and digital payments subsidiary PhonePe, as per the regulatory filings made in Singapore.
This in total makes the fund infusion in PhonePe to $928 million till date, and Flipkart marketplace to $1.88 billion.
The allotment was made last week by e-commerce ginat Flipkart Pvt. Ltd., the holding company of the e-commerce platform where Walmart acquires majority stake. This entity handles PhonePe and Flipkart’s marketplace and logistics business.
The funding for PhonePe is invested at a time when the payments company is up against WhatsApp Pay, which is planningto go live on a wider scale with higher user base the help of Reliance Jio. Over the previous month, Flipkart faced a major blow in its core business with the government blocking the sale of non-essentials on e-commerce platforms, denting the company’s top line by more than 90 percent.
As per the media reports, Flipkart and Amazon are spending more money on every delivery than before as the margins on food and fast-moving consumer goods (FMCG) are very less now in comparison to what they earned on smartphones and apparel.