Abu Dhabi's sovereign fund ADQ is in talks with Walmart-owned Flipkart for investing about $500 million in the e-commerce company ahead of its proposed initial public offering (IPO) next year.
The funding round can be a part of the $3 billion Flipkart is looking to raise from investors like SoftBank, Singapore's GIC, Canada Pension Plan Investment Board, among others. The company can increase it to $3.75 billion because of high interest.
ADQ is in talks to invest about $500 million in Flipkart, valuing the company between $35-$40 billion, Bloomberg quoted sources as saying. The talks are still ongoing and nothing is finalised yet, the news agency said.
The funding round will take place ahead of the company's IPO that could take place as soon as 2022, it said.
Earlier, Walmart International President and CEO Judith McKenna had said the company is open to the prospect of an IPO of Flipkart, but added that there was no specific timeline on that as of now.
Walmart had invested $16 billion in the Bengaluru-based company in 2018 to pick up 77 per cent stake.
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