Flipkart raises $3.6 billion in fresh funding round, valuation crosses $37 billion - watsupptoday.com
Flipkart raises $3.6 billion in fresh funding round, valuation crosses $37 billion
Posted 12 Jul 2021 04:31 PM

INDIA TODAY

Flipkart raises $3.6 billion in fresh funding round, valuation crosses $37 billion

12-07-2021

E-commerce major Flipkart has raised $3.6 billion in a fresh round of funding from a number of investors as the company plans to expand online shopping in India, allowing it to compete better with rival Amazon and a few other noted companies that have entered the space. Some of the companies that have invested in the e-commerce giant are Canada Pension Plan Investment Board (CPP Investments), Singapore’s sovereign wealth fund GIC, SoftBank Vision 2 Fund, Walmart, and others. After the fundraising, the company’s valuation has increased to $37.6 billion. Other sovereign funds like DisruptAD, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global also participated in the fresh funding round, reported The Economic Times. It may be noted that this is the first time Flipkart has raised capital from external investors. It also marks the comeback of Softbank as an investor in the company after it exited Flipkart in 2018. SoftBank had invested $2.5 billion in Flipkart and sold its stake to Walmart for $4 billion. Walmart had acquired Flipkart for $16 billion in 2018 and invested another $1.2 billion in the company in 2020. Flipkart was valued at just under $25 billion at the time. The fresh round of funding comes at a time when the e-commerce sector in India is witnessing increased competition after the Covid-19 pandemic. Flipkart plans to use the fresh capital to expand its online operations including grocery and fashion, and to enhance its supply chain and logistics network. Kalyan Krishnamurthy, Flipkart Group CEO, said, “This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart’s capabilities to maximise this potential for all stakeholders.” “As we serve our consumers, we will focus on accelerating growth for millions of small and medium Indian businesses, including kiranas. We will continue to invest in new categories and leverage made-in-India technology to transform consumer experiences and develop a world-class supply chain,” he added.

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