Walmart-backed Indian e-commerce company Flipkart is reportedly ready to raise $2-3 billion, valuing it at more than $40 billion. The main reason for seeking financing is that Flipkart wants to expand its product line in India and deal with challengers.
Walmart wants to bring in strategic investors for Flipkart, but it’s not resistant to large pure-play investment firms either, people familiar with the matter said. For the latest round of funding, Walmart has not yet formally authorized investment bankers to look for strategic investors and larger global investors.
Flipkart is now valued at more than $40 billion, having raised $3.6 billion last year, when it was valued at about $37.6 billion. A Walmart press release responded, “We don’t comment on speculation.”
Walmart invested about $16 billion in Flipkart in 2018, taking a 77% stake, and at the end of 2018 Walmart said it might take Flipkart public within four years. It was reported in April that Flipkart had internally raised its IPO valuation target by a third to $60-70 billion, and that Flipkart would not go public this year; it was aiming to hit the U.S. stock market in 2023.
