India’s e-commerce major, Flipkart, has raised $3.6 billion in a fresh round of funding. The round was led by Canada Pension Plan Investment Board (CPP Investments), Singapore government’s sovereign wealth fund GIC, SoftBank Vision Fund 2 and Walmart along with participation from existing backers like Qatar Investment Authority, post which the company has now been valued at over $37.6 billion.
Sovereign funds like DisruptAD, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global have also participated in the current funding round.
This is the first time Flipkart is raising capital from external investors after being acquired by Walmart in 2018.
The company will utilise the fresh capital to deploy investments in grocery, fashion and consumables along with deploying funds to enhance its supply chain and logistics network.
“This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart’s capabilities to maximise this potential for all stakeholders. As we serve our consumers, we will focus on accelerating growth for millions of small and medium Indian businesses, including kiranas. We will continue to invest in new categories and leverage made-in-India technology to transform consumer experiences and develop a world-class supply chain,” said Kalyan Krishnamurthy, CEO, Flipkart Group, in a prepared statement.
“SoftBank’s re-investment in Flipkart is driven by our experience with and conviction in the company’s management team to continue addressing the needs of the Indian consumer in the decades to come. From our platform as one of the largest Asian ecommerce investors, SoftBank has a broad lens on the fundamental trends shaping digital commerce in the region. The opportunity to meet consumer demand for high-quality selection at low prices and a young population make online consumption critical to India’s quest for the ‘$5 trillion economy’ that Flipkart’s growth story has been enabling,” Lydia Jett, Partner, SoftBank Investment Advisers, said.
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