Flipkart Group, owned by Walmart, has raised US $ 3.6 billion in a fresh funding round led by investors such as GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart ahead of its proposed initial public offering (IPO) later this year.
As per sources, each of the investors has invested US $ 600-800 million in the round, valuing the e-commerce giant at US $ 37.6 billion.
As per media reports, most of the funds will be used in grocery and fashion play as supply chains will be strengthened.
It is worth mentioning here that in 2018, when Walmart bought a 77 per cent stake in Flipkart for US $ 16 billion, Flipkart was valued at US $ 21-22 billion. Flipkart is aiming for a valuation of around US $ 50 billion for its IPO.
Flipkart will also buy back employee stock options worth around US $ 80 million. It has more than 350 million registered users, and has said that it will increase investments in technology, supply chain and infrastructure as it focuses on categories such as fashion, travel and groceries.
Flipkart owns India’s largest fashion e-tailer Myntra and logistics major Ekart. The Group is also a majority shareholder in PhonePe, one of the leading payments apps in India which was hived off as a separate unit in 2020 at a valuation of about US $ 5 billion.
Judith McKenna, President & CEO at Walmart International said, “Flipkart is a great business whose growth and potential mirrors that of India as a whole — that’s why we invested in 2018 and why we continue to invest today.”