India's Flipkart to raise $1.2 billion

in #business4 years ago

Flipkart will raise $1.2 billion in financing led by lion's share owner Walmart Inc (N:WMT), the Indian e-commerce firm said on Tuesday, as it hopes to compete better with Amazon.com Inc in a coronavirus-hit market.

The investment, likewise 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 neighborhood online grocery upstart JioMart, backed by billionaire Mukesh Ambani, in a key development market for e-commerce.

Ambani's Reliance Industries Ltd (NS:RELI) has received billions of dollars in recent weeks from major worldwide firms for its advanced arm, which is expected to reveal an online service for Indian grocers and private ventures.

Amazon's revenues have soared for the current year due to higher sales of groceries and household staples during the coronavirus pandemic, and in India, the Jeff Bezos-led association is presently employing 50,000 temporary workers to meet a surge in online shopping.

Flipkart said it would use the assets, to be received in two tranches this monetary year, to help the "development of its e-commerce marketplace as India emerges from the COVID-19 emergency."

Coronavirus-induced lockdowns restricted business activities in India for quite a touch of April and May. India is currently wrestling with a surge in infections, making it the third most exceedingly terrible hit nation behind Brazil and the United States.

Flipkart had a "basic sales decline" in April, Walmart said in May.

The Bengaluru-based firm said month to month active customers jumped 45% during the year ended March 31.

Flipkart didn't immediately respond to Reuters emails seeking details on the other investors in the raising help or the size of Walmart's shareholding following the deal.

Flipkart's other investors include China's Tencent (HK:0700), U.S. hedge subsidize Tiger Global, Microsoft (O:MSFT) and fellow benefactor Binny Bansal.

Sort:  

Warning! This user is on our black list, likely as a known plagiarist, spammer or ID thief. Please be cautious with this post!
If you believe this is an error, please chat with us in the #appeals channel in our discord.