Indian e-commerce giant Flipkart raises funding of USD 3.6 billion

Flipkart, the Indian e-commerce company, reportedly raised fresh funds of USD 3.6 billion from global investors. This includes private equity, sovereign funds, and financial assistance from Walmart, Flipkart’s parent company.

GIC, a Singapore-based sovereign wealth fund, SoftBank Vision Fund 2, Canada Pension Plan Investment Board, and Walmart initiated this new funding round. It also comprised of investments from Malaysia’s Khazanah Nasional Berhad, Qatar Investment Authority, and the venture arm of ADQ (Abu Dhabi sovereign fund), DisruptAD.

Franklin Templeton, Tiger Global, and tech giant Tencent have also backed this round of funding.

Kalyan Krishnamurthy, the Chief Executive Officer of Flipkart, has reportedly been quoted as stating that this investment from leading global investors showcases the potential of digital commerce in India and the confidence these stakeholders have in Flipkart’s capabilities.

He further added that Flipkart will emphasize on assisting millions of Indian SMEs in their growth, including small Kirana stores that are family-run businesses. The company also has plans to continue investment activities across home-grown tech and other new categories.

Previously in 2018, SoftBank sold its stake in Flipkart to Walmart. Its return comes at a time when Flipkart is planning to go public in the United States. The company has claimed that its current valuation is around USD 37.6 billion. SoftBank has also backed Indian tech companies like Paytm, Oyo, and Ola.

Partner at SoftBank Investment Advisers, Lydia Jett, supposedly stated that the company’s reinvestment in Flipkart is motivated by its previous experience with the company and its confidence in its management team’s ability to address the evolving needs of Indian consumers over the years to come.

Although retail shopping in India currently takes place in physical stores, the country has immense potential for online shopping. India has one of the largest bases of internet users in the world, which is expected to keep on rising in upcoming years.

Source credits:

https://www.cnbc.com/2021/07/12/india-e-commerce-giant-flipkart-.html