Walmart to invest $600 million in a $1 billion funding round for Flipkart

Walmart is set to invest $600 million in a $1 billion funding round for Flipkart, a major e-commerce player. According to sources, the remaining $400 million will come from other internal stakeholders and external investors. The funds raised will be utilized by Flipkart to expand its operations, enhance its supply chain, and strengthen its technological capabilities. It's important to note that this funding round is not a pre-IPO (Initial Public Offering) round, and another round of fundraising is expected in the following year.

Flipkart confirmed Walmart's $600 million investment but did not comment on the remaining $400 million. The current round values Flipkart at a premium of around 5-10 percent from its previous valuation, which was approximately $33 billion after accounting for the separation of PhonePe.

This funding initiative comes after earlier reports indicated that early investors such as Accel (US and India), Tiger Global, and Franklin Templeton had sold their shares in Flipkart to Walmart. In 2018, Walmart acquired a 77 percent stake in Flipkart for $16 billion, and its current holding has increased to 80.5 percent.

The additional capital infusion is expected to support Flipkart's strategic goals and further solidify its position in the competitive e-commerce market.