Flipkart Group, the e-commerce company has raised an additional $1.2-billion equity from Walmart-led investor group. However, Post equity round the company’s valuation reached $24.9 billion. The latest equity will be funded in two tranches over the remainder of the fiscal year. The investment is led by Walmart, Flipkart’s majority owner, along with a group of existing shareholders, the company said.
Flipkart said in FY20 it reported 45 per cent growth in monthly active customers and witnessed 30 per cent growth in transactions per customer. The company said it recently surpassed 1.5 billion visits per month.
‘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,’ Flipkart CEO Kalyan Krishnamurthy said. ‘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,’ he added.
Founded in 2007, the Flipkart Group includes Flipkart, digital payments platform PhonePe, fashion speciality site Myntra and eKart, a logistics and delivery service focused on solving the last mile in India’s Tier II and Tier III cities. In 2018, Walmart Inc. invested $16 billion for a majority stake in the group. ‘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,’ said Judith McKenna, President and CEO of Walmart International.