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Flipkart Raises Funding at $37.6 Billion Valuation

July 26, 2021 BeautyMatter
July 26, 2021
Flipkart

The Flipkart Group closed $3.6 billion of fresh capital, valuing the Indian online retailer at $37.6 billion.

WHO: Founded in 2007, Flipkart Group is one of India's leading digital commerce entities and includes group companies Flipkart, Myntra, and PhonePe. The Group has launched Flipkart Wholesale, a new digital marketplace that will help transform India's retail ecosystem by leveraging cutting-edge and locally developed extensive leadership in the consumer e-commerce segment and technology for the country's mom-and-pop "kirana" grocery stores and other small retailers. These retailers will have one-stop access to an extensive selection of products with attractive schemes and incentives, supplemented with data-driven recommendations for stock selection, delivered through a fast and reliable network to drive greater efficiencies and better margins.

WHY: Flipkart said it will increase investments in technology, supply chain, and infrastructure as it focuses on categories such as fashion, travel, and groceries. The deal cements Flipkart as one of the most valuable private tech companies globally while also highlighting the ongoing appetite for online shopping in India.

IN THEIR OWN WORDS: "At Flipkart, we are committed to transforming the consumer internet ecosystem in India and providing consumers access and value. 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," said Kalyan Krishnamurthy, Chief Executive Officer at Flipkart Group, in a statement.

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.

DETAILS:

  • Flipkart completed a $3.6 billion fundraising round, valuing the Indian online retailer at $37.6 billion.
  • Walmart joined investors including SoftBank, which had previously backed Flipkart and then sold its stake to Walmart at a handsome profit and now has reinvested in the business, Tencent Holdings, and Blackstone Group Inc.-backed Antara Capital. Several sovereign wealth and pension funds also participated, including Abu Dhabi's sovereign fund ADQ, Singapore's GIC Pte, Qatar Investment Authority, and Canada Pension Plan Investment Board.
  • Flipkart has more than 350 million registered users.
  • In May 2018 Walmart bought a 77% stake in Flipkart for $16 billion. In July 2020 Walmart increased its majority stake in Flipkart, leading a new $1.2 billion financing round with participation from a group of other unnamed people and existing investors. The round values the business at $24.9 billion post-money.
  • Flipkart's other investors include China's Tencent, US hedge fund Tiger Global, Microsoft, and co-founder Binny Bansal.
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