Walmart participates in the latest round of financing for Indian e-commerce giant Flipkart, with SoftBank, Tencent and other investors
Walmart, which acquired a 77% majority stake in Indian e-commerce giant Flipkart in July 2020 with a $1.2 billion financing round, is now embarking on a new $3.6 billion round of financing.
The round was led by the Government of Singapore Investment Corporation (GIC), Canada Pension Plan Investment Board (CPP), SoftBank Vision Fund2 and Walmart: as well as from discretionary funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad and market investors Tencent, WilloughbyCapital, Antara Capital, FranklinTempleton, and Tiger Global.
Flipkart is valued at approximately $37.6 billion after the financing.
Flipkart was founded by two former Amazon employees, Sachin Bansal and Binny Bansal, in 2007 and is now Amazon's biggest competitor in India.
The company was valued at $11.6 billion in 2017 after receiving a $1.4 billion investment. on August 8, 2018, India's antitrust regulator approved Walmart's acquisition of Flipkart for $16 billion.
Flipkart said it will continue to invest more deeply in people, technology, supply chain and infrastructure following this financing.
A key area of focus for Flipkart is to help the informal business sector leverage high technology, which includes deeper collaboration with the fashion industry and small businesses.
Flipkart will also work with Kiranas (India's oldest local grocery marketplace) through its expanding wholesale business and last mile delivery program to help Kiranas' more than 1.6 million small businesses digitize and grow.
With 350 million registered users from all over India, Flipkart has been investing in key categories such as fashion, travel and grocery.
Flipkart recently announced the launch of Shopsy, a service platform designed to encourage local entrepreneurship.
In addition, Flipkart's platform currently has over 300,000 registered sellers from across India, 60% of which are from tier 2 cities and surrounding areas.
Flipkart is also a majority shareholder in PhonePe, one of India's leading payment apps with over 300 million users, facilitating over 1 billion transactions per month.
In a corporate blog post, Judith McKenna, president and CEO of Walmart International, said, "Flipkart is a great business with growth and potential that reflects the entirety of India - that's why we are 2018 to invest, and why we continue to invest today.
Kalyan Krishnamurthy, CEO of Flipkart, creates new jobs and growth opportunities for Indian entrepreneurs and small businesses. The quality and valuation of the investor base announced today further confirms the global confidence in Flipkart and its mission to transform business in India.
At Flipkart, we are committed to transforming the consumer internet ecosystem in India by providing business entry and value to consumers," said Kalyan Krishnamurti.
This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart's ability to maximize this potential for all stakeholders.
As we serve consumers, we will focus on accelerating the growth of millions of Indian SMEs, including Kiranas.
We will continue to invest in new categories and leverage made-in-India technology to transform the consumer experience and develop a world-class supply chain.
J.P. Morgan Securities (Asia Pacific) Limited and Goldman Sachs LLC acted as placement agents for Flipkart, and Hogan Lovells and Shardul Amarchand Mangaldas & Co. acted as legal advisors.
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