Indian online retail powerhouse Flipkart has completed a $3.6bn (£2.6bn) fundraising to ”accelerate the growth of the consumer internet ecosystem in India”.
The financing values Flipkart at $37.6bn (£2.6bn) - more than double what Walmart paid for a majority stake in 2018 - and came ahead of an anticipated IPO.
Flipkart said that the fundraising would enable it to support the growth of small and medium-sized businesses that use its technology and services, including grocery and fashion specialists.
Flipkart group chief executive Kalyan Krishnamurthy said: “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.
”As we serve our consumers, we will focus on accelerating growth for millions of small and medium Indian businesses, including kiranas [small grocery stores]. 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.”
“Flipkart is a great business whose growth and potential mirrors that of India as a whole”
He added: ”A key focus area for the group is to help informal commerce segments leverage the power of technology. As one of the leaders in the fashion segment, this means working with the fashion industry and helping small businesses explore untapped opportunities that technology presents. Through its expanding grocery and last-mile delivery programs, the group will also work with kiranas to help them digitize and grow.”
Indian commerce on the upward growth curve
Walmart International chief executive Judith McKenna said: “Flipkart is a great business whose growth and potential mirrors that of India as a whole — that’s why we invested in 2018 and why we continue to invest today.
“Kalyan and the team have put the Indian customer at the center of everything and they have continued to innovate in the categories and services Indian customers want most, creating new jobs and growth opportunities for Indian entrepreneurs and small businesses alongside them. The quality of the investor group and valuation announced today is further confirmation of global confidence in Flipkart and its mission to transform commerce in India.”
Alongside Walmart, contributors to the fundraising included Canada Pension Plan Investment Board, SoftBank, sovereign wealth funds and Chinese giant Tencent.
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