Flipkart has raised $1.2 Bn funding round led by its majority stakeholder Walmart along with other existing shareholders. This is one of the many fund infusions received by Flipkart since the nationwide lockdown was announced in India.
The round is said to have valued Flipkart at $24.9 Bn. The fresh funds will used to support Flipkart’s recovery from the Covid-19 crisis, according to a company statement.
Commenting on the investment, Flipkart CEO Kalyan Krishnamurthy said, “Since Walmart’s initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. We will continue innovating to bring the next 200 Mn Indian shoppers online.”
Founded in 2007, the Flipkart Group includes Flipkart, digital payments platform PhonePe, fashion retailer Myntra, and a logistics and delivery service eKart. In 2018, Walmart Inc. invested $16 Bn to acquire a majority stake in the company.
Flipkart claims to have crossed 1.5 Bn visits per month and reported 45% growth in monthly active users and 30% growth in transactions per customer for FY20. Further, its digital payment subsidiary PhonePe reported annualised total payments value (TPV) of $180 Bn on over 500 Mn monthly transactions.
Fund Infusions In Flipkart Since April
In May, Flipkart Internet Private Limited issued fresh equity shares to Singapore-based Flipkart Marketplace Private Limited and Flipkart Private Limited. The 3,14,289 shares were issued at a face value of INR 1 with a premium of INR 21,476 worth INR 679.99 Cr ($89.2 Mn).
Prior to this in April, Flipkart Internet had received INR 592.8 Cr in infusion from Flipkart Marketplace on April 15 by issuing 2,76,023 shares at a nominal value of INR 1 with a premium of INR 21,476 per share.
In the same month, Flipkart Internet had also raised INR 459 Cr from Flipkart Marketplace Private Limited and Flipkart Private Limited also pumped INR 7 Cr in the Indian subsidiary.
These earlier infusions were seen as a measure to battle the lockdown lull, which had dried up operational revenue sources for the company because of the bar on the delivery of non-essentials. But, now with lockdown restrictions eased in most parts of the country, ecommerce companies have started seeing a growth in customer demand.
As of last month, the Indian ecommerce sector had recovered 90% of its pre-lockdown volume according to SaaS e-commerce platform Unicommerce. While the recovery has largely been led by electronic products, the fashion sector has also recovered 70% of its pre-lockdown volume of sales.
Last week, Flipkart invested INR 260 Cr for a minority stake in fashion brand Flying Machine’s parent entity, Arvind Fashions. “The partnership with the Flipkart Group will help us accelerate our online growth strategy as we focus our efforts on developing an omnichannel retail approach for Arvind Youth Brands and Flying Machine,” said J Suresh, CEO of Arvind Fashions.
The post Flipkart Raises $1.2 Bn To Recover From Covid-19 Crisis appeared first on Inc42 Media.
Author: Yatti Soni
Source : https://inc42.com/buzz/flipkart-raises-1-2-bn-funding-round-led-by-walmart/
Date : 2020-07-14T12:59:02.000Z