Walmart is increasing its majority stake in Indian e-commerce giant Flipkart, leading a new $1.2 billion financing round valuing the business at $24.9 billion post-money.

WHO: The Flipkart Group is one of India’s largest e-commerce marketplace and includes group companies Flipkart, Myntra, Jabong, and PhonePe. Launched in 2007, Flipkart has enabled millions of customers, sellers, merchants, and small businesses to be a part of India’s e-commerce revolution, offering over 80 million products across 80+ categories.

Walmart helps people around the world save money and live better—anytime and anywhere—in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,500 stores under 56 banners in 27 countries and e-commerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide.

WHY: The new capital infusion comes at a time when a new powerful player has started to make inroads in the Indian e-commerce market, which is the second-largest in the world.

IN THEIR OWN WORDS: “We’re grateful for the strong backing of our shareholders as we continue to build our platform and serve the growing needs of Indian consumers during these challenging times,” said Flipkart Chief Executive Kalyan Krishnamurthy in a statement.

“Since Walmart’s initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers. We will continue innovating to bring the next 200 million Indian shoppers online,” he added.

“Flipkart continues to leverage its culture of innovation to accelerate growth and enable millions of customers, sellers, merchants, and small businesses to prosper and be a part of India’s digital transformation,” Judith McKenna, President and CEO of Walmart International, said.

DETAILS:

• Walmart increased its majority stake in Flipkart, leading a new $1.2 billion financing round with participation from a group of other unnamed existing investors.
• The funds will be received in two tranches this fiscal year.
• The round values the business at $24.9 billion post-money.
• Flipkart competes with Amazon in the Indian market.
• The company’s active customer figure surged 45% in the financial year that ended in March this year, compared to the year before, and these customers are making 30% more transactions.
• The business recently surpassed 1.5 billion visits per month.
• Flipkart will face challenges not only from Amazon but the entrance of rival Indian platform JioMart owned by billionaire Mukesh Ambani’s conglomerate Reliance Industries.
• Walmart acquired almost a 77% stake in Flipkart for $16 billion two years ago, which valued the company at $20.8 billion.
• Flipkart’s other investors include China’s Tencent, US hedge fund Tiger Global, Microsoft, and co-founder Binny Bansal.