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 the new funds, Flipkart’s valuation is set to reach over $40 billion, giving a boost to the Indian financing landscape, which is going through a cold winter.
The Flipkart Group in July last year raised $3.6 billion to develop and drive the digital commerce ecosystem in India. The group was valued at $37.6 billion in post-money at the time.
According to media reports, Walmart can bring strategic investors to Flipkart through this fundraising.
According to sources close, this step has been taken to keep Flipkart ahead in the e-commerce race as online shopping picks up with every festive season in the country.
Reached for a response, a Flipkart spokesperson told IANS that “we do not comment on speculation”. Walmart declined to comment.
Previous fundraises have shown significant interest from global investors including sovereign funds, private equity and crossovers in addition to Walmart. It is led by financial investors GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, as well as sovereign funds Disrupted, Qatar Investment Authority, Khazana National Berhad and with investments from marquee investors Tencent, Willoughby Capital, Antara it was done. 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,” Flipkart Group CEO Kalyan Krishnamurthy said in July last year.
“The quality and valuation of the investor group reaffirms the global belief in Flipkart and its mission to transform commerce in India,” said Judith McKenna, President and CEO, Walmart International.
Bengaluru-based RedSeer Strategy Consultants had predicted a Gross Merchandise Value (GMV) of $11.8 billion for the entire festive month leading up to Diwali. E-commerce marketplaces usually hold up to three sales in the run up to the festival of lights.
The online retail platform in India saw festive sales of $5.7 billion (approximately Rs 40,000 crore) between September 22 and 30, a strong growth of 27 per cent (Y-o-Y).
According to the RedSeer report, mobile phones continue to lead the market with a 41 per cent contribution to the Gross Merchandise Value (GMV) and around 56,000 mobile handsets were sold every hour.
The Flipkart Group (Flipkart, Myntra and Shopee) continued to lead the market with 62 per cent market share in GMV.
First appeared on BGR India after Walmart reportedly raised up to $3 billion for Flipkart to expand its India business.