Walmart to infuse $600 million in Flipkart's fresh fundraising, says report

livemint.com:

Flipkart on December 21 confirmed that parent company Walmart will infuse around $600 million in the Indian e-commerce firm, Reuters reported. This $600 million is a part of the total $1 billion fresh capital that Flipkart is aiming for, sources told the agency. Walmart is the largest shareholder in the Bengaluru-based start-up.

The fresh capital pull is expected to bring in new investors into the e-commerce unicorn, the report added. It further noted that previous reports indicate the potential increase in valuation for the company by around 5-10 percent from its current $33 billion number. However, despite the prospective increase, the possible increase in valuation would still fall short of the remarkable $38 billion valuation achieved by the company in 2021.

Walmart did not respond to queries, the report added. Since acquiring a 77 percent stake in Flipkart for approximately $16 billion in 2018, the American retail giant has been intensifying its presence in India. Notably, it pledged to import goods worth $10 billion annually from India by 2027.

Earlier this year, Walmart fortified its hold on Flipkart by purchasing the remaining stakes held by hedge fund Tiger Global and venture capital firm Accel for $1.4 billion. The specific percentage of Walmart's stake post-purchase remains undisclosed. Flipkart, meanwhile is focused on smaller towns and cities.