Flipkart raises $3.6 bn from GIC, SoftBank, Walmart, others; valuation hits $37.6 bn

New Delhi: Flipkart Group on Monday said it has raised USD 3.6 billion (about Rs 26,805.6 crore) in funding led by Singapore’s sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2 and Walmart, valuing the e-commerce giant at USD 37.6 billion.
The company, which competes with Amazon, Reliance Industries’ JioMart and others in the burgeoning Indian e-commerce market, said it will continue to make deeper investments across people, technology, supply chain and infrastructure to address the requirements of a rapidly growing consumer base in the country.
While details about the investment made by these entities individually were not disclosed, sources said Canada Pension Plan Investment Board (CPP Investments) infused about USD 750-800 million, while SoftBank has pumped about USD 500 million.
The current funding round has also seen participation from sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad as well as marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global, Flipkart said in a statement.
The funding round values Flipkart Group at USD 37.6 billion (about Rs 2.79 lakh crore) post-money, it added.
With this deal, SoftBank is re-entering Flipkart’s cap table. SoftBank had sold its approximately 20 per cent share when Walmart bought a 77 per cent stake in Flipkart for USD 16 billion in 2018.
In July last year, Flipkart had announced a USD 1.2 billion (about Rs 9,048 crore) fundraising led by its majority shareholder Walmart that had valued the Bengaluru-based company at USD 24.9 billion (about Rs 1.87 lakh crore).
This (latest) 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,” Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said.
Flipkart 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.
Post this round, Flipkart now ranks among the top 10 global e-commerce companies in terms of market cap. This list includes names like Amazon, Alibaba and Shopify, among others.
Founded in 2007, the Flipkart Group includes Flipkart, fashion speciality site Myntra and Ekart (logistics and supply chain arm). The group is also a majority shareholder in the digital payments platform PhonePe.
E-commerce has witnessed massive growth in the country over the past few years. The pandemic has further bolstered growth as containment measures introduced millions to the convenience of online shopping while prompting seasoned online shoppers to buy more.
Social distancing compulsions, massive smartphone base and reliable broadband have galvanised e-commerce uptake beyond the metros, deep into smaller cities and towns. E-commerce platforms are ramping up capacities and hiring aggressively to cater to the growth in orders.

Leave a Reply

Your email address will not be published.