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Flipkart in talks with SoftBank, ADQ, others to raise $3 bn ahead of IPO

Flipkart is holding talks with investors such as Canada Pension Plan Investment Board (CPPIB), Abu Dhabi's ADQ, and Japan's SoftBank to raise total funding of around $3 billion

twitter-logoBusinessToday.In | June 5, 2021 | Updated 19:23 IST
Flipkart in talks with SoftBank, ADQ, others to raise $3 bn ahead of IPO
The investment may take Flipkart's valuation to approx. $30 billion - $35 billion

Flipkart is seeking a $50 billion valuation through its IPO (Initial Public Offering) in the US by next year. This would be the biggest public offering in the consumer tech space in India.

In order to set the stage, the e-commerce giant is holding discussions with investors such as sovereign wealth funds like Canada Pension Plan Investment Board (CPPIB), Abu Dhabi's ADQ, and Japan's SoftBank to raise total funding of around $3 billion, the Business Standard reported citing sources.

Meanwhile, existing investors such as Qatar Investment Authority and GIC may also participate. The investment may take Flipkart's valuation to approx. $30 billion - $35 billion.

Also Read: SoftBank in talks to invest $700 million in Flipkart

Meanwhile, SoftBank is also holding talks with the Bengaluru-based company to invest over $500 million in it and is looking to invest in Flipkart, three years after it offloaded its entire stake in the firm to Walmart Inc.

Prior to its exit in 2018, SoftBank had pumped in $2.5 billion in Flipkart. Another investor, ADQ, which is a close ally of SoftBank has been investing in its portfolio companies.

Also Read: LIC, PolicyBazaar, Flipkart and more: Top 10 IPOs to watch out for in 2021

The Abu Dhabi-based sovereign wealth fund might infuse $500 million, while CPPIB may invest around $800 million. Existing investors such as GIC and QIA are expected to pump in another $1 billion. However, decisions regarding these investments have not been made yet.

"The allocation of funds or how much each investor would invest is expected to happen in the next two weeks," a source told the publication.

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