In addition to Walmart, the Walmart-owned Flipkart Group announced that it has raised $3.6 billion in capital from a number of global investors, sovereign institutions, and private equity firms. The current investment will raise its worth to $37.6 billion, putting it in a position to compete in India with Amazon and Tata Digital Reliance, even as it prepares for a public offering in the United States later this year.
GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart led this round of funding, which also included investments from sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global.
“This investment by major global investors underlines their conviction in Flipkart’s ability to maximise the potential of digital commerce in India for all stakeholders.” We will focus on speeding growth for millions of small and medium Indian businesses, including kiranas, as we service our customers. We’ll keep investing in new categories and leveraging made-in-India technology.
Flipkart said it would continue to invest more heavily in people, technology, supply chain, and infrastructure in order to meet the needs of India’s fast rising consumer base. The Group will engage with kiranas to help them digitize and develop through its expanding grocery and last-mile delivery services.
“Asian domestic consumption has been a prominent investing focus for CPP Investments. We believe that, in the decades ahead, India will be a significant source of global growth, given to favorable demographics, a growing middle class, and increasing Internet penetration,” said Agus Tandiono, Managing Director, Head of Fundamental Equities Asia, and CPP Investments.
“SoftBank’s re-investment in Flipkart is driven by our experience with and conviction in the company’s management team to continue addressing the demands of the Indian customer in the decades to come,” Lydia Jett, who spearheaded Softbank’s re-entry into Flipkart years after it exited, stated. Walmart, Flipkart’s parent company, also participated in the transaction, having invested in 2018 to acquire a controlling interest. “Kalyan and his team have put the Indian customer at the centre of everything they do, and they’ve continued to innovate in the categories and services that Indian customers want the most, creating new jobs and growth opportunities for Indian entrepreneurs and small businesses in the process,” Judith said.
Flipkart claims to have over 350 million registered customers across India and has been investing in major categories such as apparel, travel, and groceries. On Flipkart’s marketplace, there are over 300,000 registered merchants, with 60% hailing from tier 2 and beyond. Through its wholesale business and last-mile deli, Flipkart also works with over 1.6 million kiranas in India.