Flipkart will raise $1.2 billion worth of funding from investors led by US-based retail giant Walmart, the e-commerce player said in an official release on Tuesday. Following the latest round of investment, Flipkart will be valued at $24.9 billion, the company said. Walmart is Flipkart's majority stake owner. Walmart in 2018 paid $16 billion for a more than 70 per cent stake in Flipkart, one of India's best known startups, to better compete with Amazon.com Inc in an important growth market. Flipkart did not disclose details on the size of Walmart's stake in the company following the latest deal.
"Flipkart Group today closed an additional $1.2 billion equity round to support continued development of its eCommerce marketplace as India emerges from the Covid-19 crisis," the official release stated, adding that the investment will be received in two tranches over the remainder of the fiscal year.
"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," Flipkart CEO Kalyan Krishnamurthy said, commenting on the investments.
Mr Krishnamurthy also said that the company aims to bring the next 20 crore Indian shoppers online.