According to reports, the world’s largest retailer Walmart is raising $3 billion for Flipkart, its e-commerce powerhouse, to grow its business activities in the nation. With further finance, Flipkart’s estimated value is expected to surpass $40 billion, reviving the country’s struggling financial sector. In July of last year, Flipkart Group raised $3.6 billion to expand and improve India’s digital commerce environment. After the money was invested, the group was valued at $37.6 billion.
According to media sources, Walmart may use this fundraising to attract key investors to Flipkart. According to insider sources, the strategy is intended to keep Flipkart in the lead in the e-commerce race as online buying booms on each national holiday.
In addition to Walmart, the most recent fundraising effort revealed considerable interest from foreign investors in Flipkart, including sovereign funds, private equity, and partnerships.
In addition to investments from sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global, it was led by financial investors GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2, and Walmart.
“This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart’s capabilities to maximize this potential for all stakeholders,” Kalyan Krishnamurthy, Chief Executive Officer, of Flipkart Group, had said in July last year.
“The quality of the investor group and valuation is further confirmation of global confidence in Flipkart and its mission to transform commerce in India,” Judith McKenna, President, and CEO – of Walmart International, had said.
Redseer Strategy Consultants, located in Bengaluru, anticipated that the gross merchandise value (GMV) for the entire holiday season leading up to Diwali will be $11.8 billion. Before the festival of lights, e-commerce sites typically host up to three sales. Between September 22 and September 30, the online retail platforms in India recorded $5.7 billion (about Rs 40,000 crore) in festive sales, a strong 27% (year-over-year) increase.
According to the Redseer research, mobile phones continue to dominate the industry with a contribution of 41% to gross merchandise value (GMV) and an hourly sales rate of around 56,000 mobile handsets. With a 62% market share in GMV, the Flipkart Group—which includes Flipkart, Myntra, and Shopsy—remains the market’s dominant force.
Also read:
