Walmart to raise up to $3 billion for Flipkart

Walmart Inc-backed is considering raising $2 to $3 billion at a valuation of more than $40 billion to expand its product range in India and challenge rivals, the Mint reported on Tuesday, citing two people with direct knowledge of the matter.

The world’s biggest retailer is keen to bring in strategic investors for the Indian company, but is also open to selling to large pure-play investment firms, the report said, citing one of the two people.

Walmart is yet to formally mandate investment bankers to look for strategic partners and large global investors for the latest fundraising plan, the report added.

is currently valued at over $40 billion and may dilute around 7 per cent for raising as much as $3 billion, the Mint report said.

Last year, raised $3.6 billion in a funding round, giving it a valuation of $37.6 billion.

Flipkart and Walmart did not immediately respond to Reuters requests for comment.

Walmart acquired a roughly 77 per cent stake in Flipkart for about $16 billion in 2018 – its biggest deal ever – and said later that year that it could take the company public in four years.

In April, Reuters reported that Indian e-commerce company Flipkart has internally raised its IPO valuation target by around a third to $60 billion to $70 billion and plans a U.S. listing in 2023 instead of this year.

You might also like
Leave A Reply

Your email address will not be published.