Indian e-commerce major Flipkart on Tuesday said that it will raise $1.2 billion funding from investors led by Walmart. The company will now be valued at $24.9 billion, the company said. US-based retail major Walmart owns majority stake in Flipkart.
"Flipkart Group today closed an additional $1.2 billion equity round to support continued development of its e-commerce marketplace as India emerges from the COVID-19 crisis," the company statement added.
"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. The company will receive the investment in two tranches over the remainder of FY21.
It was in May 2018 that Flipkart was last valued at $21 billion, when Walmart acquired a 77 per cent stake for $16 billion.
"Flipkart continues to leverage its culture of innovation to accelerate growth and enable millions of customers, sellers, merchants and small businesses to prosper and be a part of India's digital transformation," said Judith McKenna, President and CEO of Walmart International.
Meanwhile, Flipkart recently acquired nearly 27 per cent stake in Arvind Fashions Ltd subsidiary Arvind Youth Brands for Rs 260 crore. "Completion of the key strategic steps during the year have lent fundamental strength to our business. While COVID has been an unprecedented event which has significantly impacted the entire retail industry, as a leading casual wear company with a portfolio of brands with leading market positions and key capabilities in digital and omnichannel, we expect to gain market share as a business gets back to normal," said J Suresh, MD and CEO of Arvind Fashions.Also read: Over 90 doctors on COVID-19 duty lost their lives so far, says IMA