Walmart’s Flipkart Raises $ 3.6 Billion, SoftBank Returns as Investor
BENGALURU (Reuters) – Indian online retailer Flipkart, owned by Walmart Inc, on Monday renewed Japanese firm SoftBank Group Corp (9984.T) as an investor in a $ 3.6 billion funding round, after What the e-commerce company will be valued at $ 37.6 billion.
The fundraiser comes as Flipkart plans to go public in the United States and is targeting a valuation of up to $ 50 billion.
The latest funding was led by investors GIC, the Canada Pension Plan Investment Board, SoftBank Vision Fund 2 and Walmart, the Bengaluru-based company, which rivals Amazon.com and Reliance Industries in India.
It has also attracted investment from sovereign wealth funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad and private equity firm Blackstone Group backed by Antara Capital, among others.
SoftBank of Japan had sold its roughly 20% stake in Flipkart to Walmart, which acquired an approximately 77% stake for approximately $ 16 billion in 2018. The latest financing values the company at nearly double that rate. .
“SoftBank’s reinvestment in Flipkart is driven by our experience and belief in the company’s leadership team to continue to meet the needs of Indian consumers in the decades to come,” said Lydia Jett, Partner at SoftBank Investment Advisers.
Like its rival Amazon, Flipkart started out by selling books, but quickly branched out into the sale of smartphones, clothing and other items. It now competes with Amazon in most categories.
“We will focus on accelerating the growth of millions of Indian small and medium enterprises, including kiranas,” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement.
(Reporting by Vishwadha Chander in Bangalore; Editing by Arun Koyyur)