Flipkart gets Boost of $3.6 Billion to Compete against Amazon
Flipkart has received $3.6 billion in capital from foreign investors, sovereign funds, private equity firms. Walmart-owned Flipkart is valued at $37.6 billion (about Rs 2.79 lakh crore) in this funding. This investment will help the company compete with online retailers like Amazon in the domestic market.
Walmart also invested in Flipkart
GIC, Canada Pension Plan Investments, SoftBank Vision Fund II, Walmart, Qatar Investment Authority, Tencent, Franklin Templeton, and Tiger Global are among those who have invested in Flipkart in the current round. Veteran American retailer Walmart had bought a majority stake in Flipkart three years ago. It has also participated in the current round of funding.
Sign of investor confidence in India
Talking about the current round of investment, Flipkart Group CEO Kalyan Krishnamurthy said that the investment from large foreign investors shows the potential of digital commerce in India. He said the investment also reflects his confidence in the company's abilities to capitalize on the potential.
Continued investment in technology and infrastructure
Krishnamurthy said that the company's focus will be on providing better service to the consumer as well as promoting the growth of Kirana shops and lakhs of small and medium enterprises. The company said it will continue to invest in its staff, technology, supply chain, and infrastructure, given the rapid growth in customer base in the country.
More than 35 crores registered users across the country
Flipkart says that it has over 350 million registered users across the country. It has over three lakh sellers on its marketplace, of which 60% are from Tier-II and below category cities. The group includes brands such as fashion specialty site Myntra as well as logistics and supply chain company E-Cart. It also has a majority stake in PhonePe.
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