Flipkart raises $ 3.6 billion in funding

The Flipkart Group said Monday it has raised $ 3.6 billion in funding, as it continues to grow and advance the digital commerce ecosystem in India.

A press release from the company said the fundraiser had shown significant interest from global investors, including sovereign wealth funds, private equity and crossovers, in addition to Walmart.

This round of funding was led by financial investors GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 * and Walmart, as well as investments from sovereign wealth funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad and investors renowned Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global. The investment values ​​the Group at $ 37.6 billion post-money.

Chairman and CEO, Flipkart Group, Kalyan Krishnamurthy, said, “At Flipkart, we are committed to transforming the consumer internet ecosystem in India and providing access and value to consumers. This investment from leading global investors reflects the promise of digital commerce in India and their confidence in Flipkart’s ability to maximize this potential for all stakeholders. As we serve our consumers, we will focus 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 consumer experiences and develop a world-class supply chain. “

This investment reflects the confidence of global investors in digital commerce in India, which has continued to accelerate over the past year, when access to safe products and convenience was a priority. With this development, Flipkart will continue to invest more in people, technology, supply chain and infrastructure to meet the demands of a rapidly growing consumer base in India.

A key area for the Group is to help informal trade segments harness the power of technology. As one of the leaders in the fashion segment, that means working with the fashion industry and helping small businesses explore the untapped opportunities that technology presents. Through its expanding grocery and last mile delivery programs, the Group will also work with Kiranas to help them digitize and grow.

“One of the main investment themes of RPC Investments has been domestic consumption in Asia. We believe that India will be one of the main sources of global growth in the decades to come, supported by a positive demographics, a growing middle class and increasing internet penetration, ”said Agus Tandiono, Managing Director, responsible for fundamental stocks Asia, CPP Investments. “This investment in Flipkart builds on our program to provide long-term capital to industry leaders. We look forward to supporting Flipkart’s efforts in growing the Indian e-commerce market.

“SoftBank’s reinvestment in Flipkart is driven by our experience and belief as the company’s management team to continue to meet the needs of Indian consumers in the decades to come,” said Lydia Jett, Partner, SoftBank Investment Advisers. “From our platform as one of Asia’s largest e-commerce investors, SoftBank has a broad view of the fundamental trends shaping digital commerce in the region. The opportunity to meet consumer demand for high-quality, low-cost selection and a young demographic make online consumption essential to India’s quest for the “$ 5,000 billion economy” that India has to offer. Flipkart’s growth allowed, ”added Jett.

“Flipkart is a great company whose growth and potential mirrors that of India as a whole – that’s why we invested in 2018 and why we continue to invest today,” said Judith McKenna, President and CEO of Walmart International. “Kalyan and his team have put the Indian customer at the center of everything and have continued to innovate in the categories and services that Indian customers want the most, creating new jobs and growth opportunities for Indian entrepreneurs and small businesses. by their side. The quality of the investor group and valuation announced today is further confirmation of the global confidence in Flipkart and its mission to transform commerce in India. “

Sukumar Rajah, Director of Portfolio Management, Franklin Templeton Emerging Markets Equity, said: “We are optimistic about the prospects for e-commerce growth and digitalization in India and believe that Flipkart is well positioned to benefit from this growth.

With over 350 million registered users nationwide, Flipkart has invested in key categories including fashion, travel and groceries, which reflect India’s mature digital commerce industry. Myntra, the Group’s fashion entity, is among the leaders in the category, with a large consumer base offering the most complete and recent fashion collections. Flipkart’s logistics and supply chain arm, Ekart, employs over 100,000 people and delivers over 90% addressable PINs in India, which, together with strategic investments in warehouse infrastructure , is one of the group’s main assets. Venturing into the social commerce space, Flipkart recently announced the launch of Shopsy, which will encourage local entrepreneurship.

Over 300,000 registered sellers nationwide are in the Flipkart Marketplace, and 60% are from cities of Tier 2 and beyond. Flipkart also works with over 1.6 million kiranas in India through its wholesale business and last mile delivery program, thereby contributing to the income of these kiranas and encouraging job creation in the ecosystem. In addition, Samarth, Flipkart’s program to support small businesses, underserved communities and artisans, has more than 750,000 beneficiaries.

The group is also the majority shareholder of PhonePe, one of the leading payment apps in India with over 300 million users, facilitating over a billion transactions per month, 80% of which occur in Tier 2 cities. and 3 and beyond.

JP Morgan Securities (Asia Pacific) Limited and Goldman Sachs & Co. LLC acted as placement agents of Flipkart in connection with this transaction, Hogan Lovells and Shardul Amarchand Mangaldas & Co acted as legal advisers.

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