Flipkart, an Indian e-commerce retail portal, revealed on Monday that it had raised $3.6 billion in new funding from a consortium of investors, including Walmart (NYSE: WMT).
“We invested in 2018 and continue to invest today because Flipkart is a wonderful business whose growth and potential reflects that of India as a whole,” said Judith McKenna, president and CEO of Walmart International, which has had a 77 percent share in Flipkart since 2018.
Walmart led the round, which is thought to be Flipkart’s pre-IPO fundraising, alongside GIC, Canada Pension Plan Investment Board, and Softbank Vision Fund 2. Since March, the company, which now has a post-money valuation of $37.6 billion, has apparently been exploring an IPO in the United States with a blank-check firm.
Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, Tiger Global, and government funds Qatar Investment Authority, DisruptAD, and Khazanah Nasional Berhad were among the other investors in the round.
“They have continued to innovate in the categories and services that Indian customers demand most, creating new jobs and growth possibilities for Indian entrepreneurs and small businesses alongside them,” McKenna said of Flipkart CEO Kalyan Krishnamurthy and his team. The caliber of the investor group and the valuation announced today reaffirms global trust in Flipkart and its ambition to improve Indian commerce.”
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India’s e-commerce business is predicted to overtake that of the United States by 2034, making it the world’s second-largest market.
One of the reasons SoftBank is reinvesting in Flipkart is because of its continued expansion. In 2018, it sold its stock to Walmart (NYSE: WMT).
“SoftBank’s investing in Flipkart is motivated by our confidence in the company’s management team to continue addressing the demands of the Indian customer in the decades ahead,” said Lydia Jett, a partner at SoftBank Investment Advisors.
“SoftBank has a broad lens on the fundamental dynamics affecting digital commerce in the region thanks to our platform as one of the leading Asian e-commerce investors.” “With a young population and the ability to meet customer demand for high-quality variety at cheap rates, online consumption is key to India’s goal for the ‘$5 trillion economy,’ which Flipkart’s development narrative has enabled,” Jett added.
Flipkart wants to use the fresh capital to hire more delivery people and invest in more last-mile delivery services to meet its rapidly growing customer base, which now stands at 350 million registered Indian customers.
Details about the funding: Flipkart
The total amount of money available is $3.6 billion.
Round of funding: private equity
Investors in the lead
GIC, Canada Pension Plan Investment Board, Softbank Vision Fund 2 and Walmart are among the companies that have invested in GIC.
Investors in the secondary market
Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, Tiger Global, and sovereign funds are among the companies that have invested in sovereign funds. Qatar Investment Authority, DisruptAD, and Khazanah Nasional Berhad are all part of the Qatar Investment Authority.
Business objectives
Enhance and expand technology solutions, expand market sectors, expand delivery and business partners, and increase the number of registered users
Valuation after the fact
37.6 billion dollars
$12.6 billion in total funding
Flipkart is apparently hoping to use technology to assist small businesses, known in India as kiranas, compete with huge corporations in developing industry categories such as fashion. Flipkart just introduced Shopsy, a social commerce platform that encourages entrepreneurs to join the company’s 1.6 million kiranas network.
“At Flipkart, we’re dedicated to revolutionizing India’s consumer internet environment and giving consumers with value and access.” “This investment by major global investors underlines their conviction in Flipkart’s ability to leverage the potential of digital commerce in India for all stakeholders,” said Krishnamurthy. “We will focus on increasing growth for millions of small and medium Indian businesses, including kiranas, as we serve our customers.”
“To revolutionize consumer experiences and establish a world-class supply chain, we will continue to invest in new categories and harness made-in-India technologies,” he said.
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