The Flipkart group announced on Monday, July 12, that it has raised $3.6 billion in funding from a slew of investors including sovereign funds, private equity and crossovers in addition to Walmart, taking the company’s valuation to $37.6 billion.
This round of funding was led by financial investors GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, along with investments from sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global.
Flipkart said that with these funds, it will make deeper investments across people, technology, supply chain and infrastructure “to address the requirements of a rapidly growing consumer base in India”.
Outlining its plans, Flipkart said a focus area for the group is to help informal commerce segments use technology. “As one of the leaders in the fashion segment, this means working with the fashion industry and helping small businesses explore untapped opportunities that technology presents. Through its expanding grocery and last-mile delivery programs, the Group will also work with kiranas to help them digitise and grow,” Flipkart said in a statement.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, “This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart’s capabilities to maximise this potential for all stakeholders. As we serve our consumers, we will focus on accelerating growth for millions of small and medium Indian 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.”
Flipkart said it has 350 million registered users across categories, and it has been investing in fashion, travel and grocery. Logistics arm Ekart now employs over 1 lakh people and Flipkart said it can deliver to over 90% of India’s addressable pincode. This fundraise comes soon after Flipkart announced that it was launching Shopsy, in competition with companies such as Shopify and Meesho.
“More than 300,000 registered sellers from across the country are on Flipkart’s marketplace, and 60% are from tier 2 cities and beyond. Flipkart also works with more than 1.6 million kiranas in India through its wholesale business and its last-mile delivery program, thereby contributing to the incomes of these kiranas and encouraging employment creation in the ecosystem. In addition, Samarth, Flipkart’s program to support small businesses, underserved communities and artisans, has more than 750,000 beneficiaries,” Flipkart said in its statement.
“From our platform as one of the largest Asian eCommerce investors, SoftBank has a broad lens on the fundamental trends shaping digital commerce in the region. The opportunity to meet consumer demand for high-quality selection at low prices and a young population make online consumption critical to India’s quest for the ‘$5 trillion economy’ that Flipkart’s growth story has been enabling,” Lydia Jett, Partner, SoftBank Investment Advisers said.