SoftBank Leads Flipkart's $3.6 Billion Funding Round, Walmart's (WMT) Indian Startup Now Valued at $37.6 Billion, Considers IPO
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Flipkart, India-based online retailer, announced today it raised $3.6 billion from investors led by SoftBank to hit a $37.6 billion valuation. Alongside SoftBank, GIC, Canada Pension Plan Investment Board, and Walmart also provided funding for the Indian company.
New valuation, which more than doubled compared to 2018 when Walmart (NYSE: WMT) acquired a 77% stake for $16 billion. Almost a year ago, the company was valued at $24.9 billion.
“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,” Judith McKenna, president and chief executive of Walmart International, said in a statement.
The ecommerce Indian giant has also said it will explore going public at a valuation up to $50 billion.
"We will focus on accelerating growth for millions of small and medium Indian businesses, including kiranas," Kalyan Krishnamurthy, Flipkart chief executive, said in a statement.
“This investment reflects global investor confidence in digital commerce in India, which has continued to accelerate over the last year,” it is further said in the statement.
Although it sold its 20% stake in the company in 208, SoftBank returned to Flipkart three years later.
"SoftBank's re-investment in Flipkart is driven by our experience with and conviction in the company's management team to continue addressing the needs of the Indian consumer in the decades to come," Lydia Jett, partner at SoftBank Investment Advisers, said.
According to the Wall Street Journal, Walmart now owns about 75% of the Indian company. This would translate into a $28.2 billion stale based on the latest Flipkart’s valuation.
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