Flipkart raises $3.6 bn from SoftBank, CPPIB, wealth funds

 Flipkart raises $3.6 bn from SoftBank, CPPIB, wealth funds

Indian ecommerce company Flipkart Group has raised $3.6 billion in funding to grow its operations and take on rivals such as Amazon.com Inc and Reliance Industries Ltd’s JioMart.

The funding round was led by Singapore wealth fund GIC, Canada Pension Plan Investment Board (CPPIB), SoftBank Vision Fund 2 and Walmart, which had acquired a majority stake in Flipkart three years ago.

Abu Dhabi sovereign fund ADQ’s venture arm DisruptAD, Qatar Investment Authority and Malaysia’s Khazanah Nasional Berhad also invested in Flipkart. China’s Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global were among the other investors.

The investment values the Flipkart group at $37.6 billion post-money, the ecommerce company said in a statement.

Walmart had acquired a 77% stake in Flipkart in 2018 for $16 billion, valuing the Indian company around $20.8 billion. The deal had also marked the exit of SoftBank, and the Japanese tech investor is now reinvesting.

“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,” said Lydia Jett, partner at SoftBank Investment Advisers.

Flipkart group CEO Kalyan Krishnamurthy said the company will continue to invest in new categories and develop its supply chain. Flipkart will also make investments across people, technology, supply chain and infrastructure.

“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,” he said.

Sumit Upadhyaya

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