Walmart-owned Flipkart raises $3.6B in funding at a valuation of $37.6B

Homegrown ecommerce platform Flipkart today announced it has raised US$3.6 billion (about Rs 26,849 crore) in funding led by a group of global investors, sovereign funds, private equity. Walmart also participated in the funding round.

Investors, including Investment Board (CPP Investments), SoftBank Vision Fund 2, US-based Walmart, GIC, Canada Pension Plan investments from sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global, participated.

According to the company, the funding will help the company to continue its efforts to grow and advance the digital commerce ecosystem in the country. Following the current deal, the Flipkart Group is now valued at US$37.6 billion.

Speaking on the investment, Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said:

“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."

"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.”

Flipkart in a statement said that it will continue to make deeper investments across people, technology, supply chain, and infrastructure to address the requirements of a rapidly growing consumer base in the country. The company is primarily focused on helping informal commerce segments leverage the power of technology. Through its expanding grocery and last-mile delivery programs, the Group will also work with kiranas to help them digitize their business.

“One of the key investment themes for CPP Investments has been Asia’s domestic consumption. We believe India will be a leading source of global growth in the decades ahead, supported by positive demographics, a growing middle class and deepening Internet penetration,” said Agus Tandiono, Managing Director, Head of Fundamental Equities Asia, CPP Investments.

“This investment in Flipkart builds on our program to provide long-term capital to industry leaders. We look forward to supporting Flipkart’s efforts in growing India’s e-commerce market," he added.

“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,” said Judith McKenna, President & CEO – Walmart International.

Sukumar Rajah, Director of Portfolio Management, Franklin Templeton Emerging Markets Equity, said, “We are optimistic about the growth prospects of e-commerce and digitalization in India and believe Flipkart is well-positioned to benefit from this growth.”

The Group is also a majority stakeholder in fintech firm PhonePe, one of the leading Payments Apps in India with more than 300 million users, facilitating over 1 billion transactions per month, 80% of which occur in tier 2 and 3 cities and beyond.

J.P. Morgan Securities (Asia Pacific) Ltd. and Goldman Sachs & Co. LLC served as placement agents to Flipkart for this transaction, Hogan Lovells and Shardul Amarchand Mangaldas & Co served as legal counsel, the company said.

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