Walmart is increasing its stake in Flipkart by investing an additional $1.2 billion in the Indian e-commerce giant. The fresh equity round from Walmart, which acquired majority stake in Flipkart for $16 billion two years ago, values Flipkart at $24.9 billion post-money, the two companies said.
The American retail group said the fresh capital would help Flipkart further grow its e-commerce marketplace in India as the world's second largest internet market begins to recover from Covid-19 crisis.
“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,” said Flipkart chief executive Kalyan Krishnamurthy in a statement.
“Since Walmart's initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers. We will continue innovating to bring the next 200 million Indian shoppers online,” he added.
Flipkart, which competes with Amazon in India, said its monthly active customers figure surged 45% in the financial year that ended in March this year, compared to the year before, and these customers are making 30% more transactions. The 13-year-old firm said it recently surpassed 1.5 billion visits per month.
The new capital infusion comes at a time when a new, powerful player has started to make a play in the Indian e-commerce market. JioMart, a joint venture between Reliance Retail (India's largest retail chain) and Jio Platforms (India's largest telecom operator), launched earlier this year in select sub urban areas of Mumbai and has since expanded to more than 200 cities and towns across the nation.
More to follow…