Big ticket funding deals continue unabated in India’s new economy space through the lockdown. After the likes of Facebook and Intel investing in Reliance Jio and Monday's announcement of Google investing Rs 75,000 crore in India, it was the turn of India’s e-commerce giant Flipkart. On Tuesday evening, parent company Walmart announced it was throwing another Rs 9,000 crore at its Indian entity.
Post the money coming in, Flipkart’s valuation will rise to Rs 1.87 lakh crore (24.9 billion dollars). The fund infusion, from Walmart as well as existing shareholders, will happen over two tranches this financial year itself.
“Since Walmart's initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services,” said Flipkart CEO Kalyan Krishnamurthy. “We will continue innovating to bring the next 200 million Indian shoppers online.”
Flipkart is engrossed in a no-holds-barred flight for India’s e-commerce space with global giant Amazon, with warning bells sounding over Mukesh Ambani’s Reliance Jio and its ‘hyperlocal commerce’ intentions to upend this lucrative space. With digital economy predicted to be the top post-pandemic growth opportunity, the additional money will help in the deep cash burn required to sustain market share and possible growth.
Beside the flagship e-commerce platform, Flipkart also has a major presence in Fintech, with its brand PhonePe being a leading player in the UPI money transaction space. Flipkart’s subsidiary shopping sites include the likes of Myntra. The parent e-commerce site reportedly receives 150 crore visits every month.