Last JulyWhen Flipkart raised 1. 1.2 billion in a Walmart-led funding round, it was worth about Rs. .9 24.9 billion. And now that Flipkart has raised 6 6.3 billion, one of the largest financing for a private Indian company, it is worth 6 6.6 billion.
The investment also reflects the confidence of global investors in digital trade in India, which has increased over the past year to the point where products have been preferred safely and conveniently.
India is one of the fastest growing e-commerce markets in the world and is expected to have a total turnover of 300 million buyers by 2025.
Who are the funders now?
The latest round of funding was led by the Canadian Pension Plan Investment Board (CPP Investments), the Singapore government’s sovereign wealth fund GIC, Softbank Vision Fund 2 and Walmart, Flipkart’s largest shareholder. Current supporters such as the Qatar Investment Authority, Tencent, and Tiger Global also attended.
Judith McCain, President and CEO of Walmart International, said, “Flipkart is a huge business that reflects the growth and potential of India. That’s why we invested in 2018 and why we invest today. The work continues. ”
It is expected that after this round of funding, Walmart’s stake in Flipkart will increase from 74% to 74%.
Softbank, a Japanese tech company, is back in Flipkart’s scheme. It had previously invested 2.5 2.5 billion in Flipkart in 2017, but sold it to Walmart for 4 4 billion a year later.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, “This investment by investors globally reflects their commitment to digital commerce in India and their belief in the capabilities of Flipkart in this regard. We will continue to invest in new categories and state-of-the-art technology developed in India to transform the customer experience and create a world-class supply chain.
“We believe that India will be a major source of global growth in the coming decades, which will be helped by a positive population ratio, a growing middle class and an increase in the depth of the Internet.” In a Flipkart statement
Lydia Jet, co-founder of Softbank’s Investment Advisors, said: “Softbank’s reinvestment in Flipkart goes hand in hand with our experience and conviction with the company’s management team that will take into account the needs of the Indian consumer in the coming decades. “
Where is the funding expected to go?
Flipkart is expected to invest heavily in people, technology, supply chain and infrastructure to meet the needs of India’s rapidly growing consumer base. The main focus of the company is to help the informal business classes to take advantage of the power of technology.
Flipkart said it will work with the fashion industry and help small businesses explore the unforgettable opportunities offered by technology. Through its expanded grocery and last-minute delivery programs, Flipkart will also work with cranes to digitize and grow them.
Flipkart’s logistics and logistics chain, Ecart, employs more than 100,000 people and delivers more than 90% of the address pin codes in India, in conjunction with strategic warehouse infrastructure investments. There is power. Moving into the social business space, Flipkart recently announced its launch Shop, Which will encourage local business.
Flipkart is also buying more than 80 80 million worth of employee shares, which will provide liquidity to the company’s shareholders.
The investment in Flipkart comes at a time when the Ministry of Consumer Affairs has Proposed changes in India’s e-commerce rules. These include banning flash sales in particular and banning in-house labels.