Indian E-commerce giant Flipkart raised another US$3.6 billion (£2.6 billion) before its highly anticipated public appearance. The Wal-Mart-backed company said it would use the funds to expand its business and make more investments in groceries, fashion, and delivery services.
In July last year, Wal-Mart led the $1.2 billion Flipkart round. Also valued the e-commerce company at $24.9 billion. Besides, the new valuation is more than twice the amount paid by a US retail chain for a controlling stake in Flipkart three years ago.
Kalyan Krishnamurti, CEO of Flipkart, said that the new funding would support the company’s expansion plan: “While serving our customers, we will focus on accelerating the development of millions of Indian SMEs.”
Technology to change the consumer experience and develop a world-class supply chain. Krishnamurti added that he would continue to invest in new categories and use Made in India. In a company statement. The new round of financing is led by Singapore’s GIC Investment sovereign wealth fund.
To date, the largest funding in the Indian startup ecosystem comes from financial investors. GIC, Canadian Pension Investment Commission (CPP Investments), Japan’s SoftBank Vision Fund 2, and Walmart. As well as the national fund DisruptAD, Qatar Investment Authority and Khazanah’s.
This transaction marks the return of SoftBank, which sold approximately 20% of Flipkart’s shares to Walmart in a 2018 transaction. It first landed on the stock market earlier this year.
The online stores including groceries and furniture. After the deal with Wal-Mart, the company added more products to its online store. Other notable investors include Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global.
Flipkart has also increased its storage capacity as it competes with the Indian company Amazon and the local competitor. Mukesh Ambani, Reliance owner JioMart and Tata Digital, recently attacked the region by acquiring a majority stake in BigBasket.
Round makes Flipkart one of the top 10 e-commerce companies in the world. The list includes players such as Amazon, Alibaba, Shopify, Garena, and Pinduoduo. Analysts said these companies include JD.com, MercadoLibre, Coupang, and JD Health.
In 2018, Wal-Mart spent $16 billion to acquire a 77% stake in Flipkart. Further, he said it could go public within four years. In September this year, Reuters reported that Flipkart is preparing to conduct an IPO outside India. In this year, that may cost US$50 billion.
Some of the country’s largest digital startups have begun to sell shares on the stock market. Driven by the proliferation of smartphones and cheap mobile data products, startups sell everything from groceries to vacations. It is scheduled to debut this month through India’s biggest food delivery app Zomato. Also, PayTM is expected to be available later this year.
Image courtesy of aapke Facts/YouTube
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