Walmart is the world’s largest retailer which is now seeking an investment of dollar 1.2 billion in Flipkart. This investment will increase the valuation of The E-Commerce firm at dollar 24.9 billion.
Walmart already invested dollar 16 billion to purchase the majority stake in Flipkart in 2018. This majority investment was made when the bengaluru-based company had valuations less than dollar 21 billion.
By 1.2 billion Walmart will increase its share held in Flipkart from 77 % to nearly 80% now. Other existing shareholders of the company such as tiger global and tencent have also taken part in the new financing round but they still hold minority shares.
The Flipkart Walmart investment announcement the next days after Google declared an investment of dollar 10 billion in India in the form of equity as well as foreign partnerships and direct investments to build supporting infrastructure. Going back to the month of April, we can also state the social media company Facebook announcing a minority stake in Reliance jio for dollar 5.7 billion. This Facebook jio investment is also considered the largest foreign direct investment in India in the technology sphere.
According to Flipkart, this equity investment will supplement the continuous development of its marketplace and will be funded into tranches over the year. Flipkart chief executive officer, Kalyan Krishnamurthy, says that walmarts initial investment in Flipkart has led to massive expansion of their offer through technology, partnerships and new services making at the leading electronics and fashion e commerce which is rapidly increasing it shares and other general merchandise categories and grocery.
Flipkart was founded in 2007 and includes Flipkart, phonepe which is its digital payments portal, Myntra which specialises in fashion and e cart which is the logistics and delivery service. recently it has surpassed 1.5 million visits per month and is also reported a 45% rise in its monthly active customers as well as a 30% growth in its transaction for customer for the financial year 2020. Today Flipkart offers more than 150 million products across more than 80 categories.