Flipkart, an Indian e-commerce company backed by Walmart, the world’s biggest retailer, will raise up to US $ 3 billion at a valuation of more than US $ 40 billion to expand its product range in India and challenge rivals.
Last year, Flipkart had raised US $ 3.6 billion in a funding round, giving it a valuation of US $ 37.6 billion and it is currently valued at over US $ 40 billion. It may dilute around 7 per cent for raising as much as US $ 3 billion.
Apparel sales contribute significantly in Flipkart’s revenue.
As per Mint, a leading English business daily, Walmart is keen to bring in strategic investors for the Indian company, but is also open to selling it to large pure-play investment firms.
It also adds that Walmart is yet to formally mandate investment bankers to look for strategic partners and large global investors for the latest fundraising plan.
Walmart acquired a roughly 77 per cent stake in Flipkart for about US $ 16 billion in 2018 – its biggest deal ever – and said later that year that it could take the company public in four years.
It was also reported that Flipkart has internally raised its IPO valuation target by around a third to US $ 60 billion to US $ 70 billion and plans a US listing in 2023 instead of this year.
