Flipkart Secures $3.6 Billion Funding, Valuation Hits $37.6 Billion

Flipkart has successfully raised $3.6 billion in a fresh funding round led by its parent company, Walmart Inc., and returning investor SoftBank Group Corp.. This latest infusion of capital has pushed the e-commerce giant’s valuation to $37.6 billion, as it gears up for a potential public offering.

In a statement released on Monday, Flipkart revealed that the funding round saw participation from several high-profile investors including Singapore’s GIC Pte, China’s Tencent Holdings Ltd, Canada Pension Plan Investment Board (CPP Investments), Abu Dhabi DisruptAD, Qatar Investment Authority, Malaysia’s Khazanah Nasional Bhd, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global.

Follow-up to Previous Funding

This latest round comes a year after Flipkart received $1.2 billion in equity commitments from Walmart and a consortium of existing shareholders. Since its inception 14 years ago, Flipkart has amassed over $10.8 billion in funding, according to data from research firm Tracxn.

In June, Mint reported that SoftBank Group was in discussions with Flipkart to invest $700 million in the company, three years after selling its entire stake to Walmart. Flipkart Group CEO Kalyan Krishnamurthy stated, “This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart’s ability to maximize its potential for all stakeholders. While serving our consumers, our focus will be on accelerating the growth of millions of Indian small and medium businesses, including kiranas. We will continue to invest in new categories and leverage ‘made in India’ technology to transform the consumer experience and develop a world-class supply chain.”

As part of the fundraise, Flipkart has also launched an Employee Stock Buyback Program (ESOP) worth ₹600 crore. According to a company spokesperson, close to 5,600 employees, referred to as Flipsters, will be eligible for this buyout, allowing them to liquidate up to 5% of their three-year vested options.

Shareholder Structure and Future Plans

In an internal memo on Monday, Krishnamurthy emphasized the need for Flipkart to elevate its digital commerce value proposition to the next 200 million Indians. Mint reviewed a copy of the memo.

Judith McKenna, President and CEO of Walmart International, remarked, “Flipkart is a great business whose growth and potential mirror the growth and potential of India as a whole—that’s why we invested in 2018 and why we continue to invest today. The quality of the investor group and the valuation announced today are further confirmation of the global confidence in Flipkart.”

The new funds will also be used to bring more informal small businesses into the digital ecosystem. By expanding its grocery and last-mile delivery programs, Flipkart Group aims to digitize kiranas, the statement said.

As part of this round, CPP Investments invested $800 million into the e-commerce entity. Currently, Flipkart’s wholesale business and last-mile delivery program serve over 1.6 million kirana stores.

Flipkart Group boasts more than 350 million registered users and includes online fashion marketplace Myntra and logistics arm Ekart among its group businesses. Lydia Jett, partner at SoftBank Investment Advisers, noted, “The ability to meet consumer demand for high-quality selection at low prices and a young population make online consumption central to India’s move toward becoming a ‘$5 trillion economy,’ which Flipkart’s growth story is enabling.”