$40-bn valuation for Flipkart on $3-bn fund mobilisation
Walmart reportedly raising up to $3 bn for Flipkart to expand India biz; Latest round of fund mobilization expected to enhance e-commerce giant’s valuation further; After raising $3.6bn in July 2021, Flipkart’s valuation rose to $37.6bn
Indians spent big on festive season sales
However, Flipkart and Walmart denied to comment on fund mobilization plan. Flipkart spokesperson said that "we don't comment on speculation.' Walmart declined to comment
New Delhi: Retail giant Walmart is reportedly raising up to $3 billion for its e-commerce giant Flipkart to further expand its operations in the country. With new funds, Flipkart's valuation is set to soar to more than $40 billion, giving a fillip to the Indian funding scene which is going through a harsh winter.
Flipkart Group in July last year raised $3.6 billion to grow and advance the digital commerce ecosystem in India. The investment valued the group at $37.6 billion post the money then. According to media reports, Walmart may bring strategic investors into Flipkart via this fundraising.
The move, according to close sources, is to keep Flipkart ahead in the e-commerce race as online shopping surges with every festive season in the country. Reached for a reaction, a Flipkart spokesperson said that "We do not comment on speculation". Walmart declined to comment.
The last fundraise demonstrated significant interest from global investors, including sovereign funds, private equity and crossovers in addition to Walmart. It was led by financial investors GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, along with investments from sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global.
"This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart's capabilities to maximise this potential for all stakeholders," Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, had said in July last year.
