Walmart - A US-based retail giant – has infused $1.2 Billion in Flipkart’s commerce business. This infusion has made the aforementioned commerce business to be at the valuation of $24.9 billion today.
Flipkart said that the company has recently surpassed 1.5 billion visits per month, and has reported 45 percent growth in monthly active customers. The company also said that there is 30 percent growth in transactions per customer for FY20. With more than 80 categories, Flipkart offers 150 million products at present.
As reported by some industry experts, Walmart owns to about 80 percent of the Bangalore-based online retailer and with this infusion and the infusion will take its shares more up a percentage, to be precise. Flipcart was acquired two years ago for $16 billion, and this $1.2 billion infusion will be its largest fund raised till date from the time it was acquired.
As reported by some industry experts, Walmart owns to about 80 percent of the Bangalore-based online retailer and with this infusion and the infusion will take its shares more up a percentage, to be precise. Flipcart was acquired two years ago for $16 billion, and this $1.2 billion infusion will be its largest fund raised till date from the time it was acquired.
According to the Flipkart, “The investment is led by Walmart, Flipkart Group's majority owner, along with a group of existing shareholders and values the company at $24.9 billion post-money. It will be funded in two tranches over the remainder of the fiscal year.”
Flipkart got this robust backing from Walmart just when Mukesh Ambani-led Jio Platforms has gathered $15 billion from various investors including Facebook and private equity biggies that includes Silver Lake and KKR. Furthermore, if we look at Bloomberg report, even Google were in the talks of offering $4 Billion to Jio platforms.
Kalyan Krishnamurthy, CEO, Flipkart said, "We're grateful for the strong backing of our shareholders as we continue to build our platform and serve the growing needs of Indian consumers during these challenging times," said Kalyan Krishnamurthy, CEO, Flipkart.
"Since Walmart's initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers. We will continue innovating to bring the next 200 million Indian shoppers online," he added.
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