By Administrator_India
Flipkart will raise $1.2 billion in funding led by majority owner Walmart Inc , the Indian e-commerce firm said on Tuesday, as it looks to compete better with Amazon.com Inc in a coronavirus-hit market.
The investment, also funded by other existing shareholders, values Flipkart at $24.9 billion, and comes two years after U.S. retail giant Walmart paid $16 billion for a more than 70% stake in Flipkart.
Besides Amazon, Flipkart faces competition from local online grocery upstart JioMart, backed by billionaire Mukesh Ambani, in a key growth market for e-commerce.
Ambani’s Reliance Industries Ltd. has received billions of dollars in recent weeks from major global firms for its digital arm, which is expected to roll out an online service for Indian grocers and small businesses.
The investment, also funded by other existing shareholders, values Flipkart at $24.9 billion, and comes two years after U.S. retail giant Walmart paid $16 billion for a more than 70% stake in Flipkart.
Besides Amazon, Flipkart faces competition from local online grocery upstart JioMart, backed by billionaire Mukesh Ambani, in a key growth market for e-commerce.
Ambani’s Reliance Industries Ltd. has received billions of dollars in recent weeks from major global firms for its digital arm, which is expected to roll out an online service for Indian grocers and small businesses.
The Bengaluru-based firm said monthly active customers jumped 45% during the year ended March 31.
Flipkart did not immediately respond to Reuters emails seeking details on the other investors in the fundraising or the size of Walmart’s shareholding following the deal.
Flipkart’s other investors include China’s Tencent , U.S. hedge fund Tiger Global, Microsoft and co-founder Binny Bansal.
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