BENGALURU: Flipkart Group is set to receive a fund infusion of $1.2 billion led by majority owner Walmart, along with a group of existing shareholders, for its e-commerce business.
The investment values the Flipkart Group at $24.9 billion in post-money valuation, with funds expected to come across in two tranches over the remainder of the fiscal.
In 2018, Walmart Inc. invested $16 billion for a majority stake in the Flipkart group.
In December, Flipkart India had received a fund infusion of ₹2,839 crore from its Singapore-based parent. The company’s parent had injected ₹1616.12 crore in September, and ₹1431.3 crore in January 2019 in Flipkart India.
"We're grateful for the strong backing of our shareholders as we continue to build our platform and serve the growing needs of Indian consumers during these challenging times," said Kalyan Krishnamurthy, CEO, Flipkart.
"Since Walmart's initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers. We will continue innovating to bring the next 200 million Indian shoppers online," added Krishnamurthy.
Flipkart, at present is investing in technology such as voice assistants and local language interfaces to help make shopping easier for non-English speaking customers, as it looks to onboard new customers.
The Flipkart Group includes Flipkart, digital payments platform PhonePe, fashion e-commerce website Myntra and logistics and delivery service arm eKart.
Recently, Flipkart surpassed 1.5 billion visits per month and reported 45% growth in monthly active customers and 30% growth in transactions per customer for FY20, the company said. At present, Flipkart offers 150 million products across more than 80 categories.
PhonePe recently reported annualised total payments value (TPV) of $180 billion, and witnesses more than 500 million transactions monthly on its platform.
"Flipkart continues to leverage its culture of innovation to accelerate growth and enable millions of customers, sellers, merchants and small businesses to prosper and be a part of India's digital transformation. Kalyan and team have a clear vision and are relentlessly focused on giving Indians frictionless choice in how they shop and sell online," said Judith McKenna, president and CEO of Walmart International.
Earlier in May, during its Q1 earnings call, Walmart Inc. had said net sales for its international business was impacted as its Indian subsidiary Flipkart was unable to make non-essential deliveries during the covid-19 induced lockdown in India.