Indian online retailer Flipkart, owned by American Walmart Inc., said it raised $ 3.6 billion in a new round of funding and the estimated value of the company reached $ 37.6 billion.
Investors led by Singapore-based GIC Pte. Ltd. also included Canada Pension Plan Investment Board (CPPIB), Vision Fund 2, owned by Japanese SoftBank, and Walmart.
The deal allowed Flipkart to establish itself as one of the most valuable private technology companies in the world and speaks of investor interest in technology deals in emerging markets writes The Wall Street Journal.
“This investment reflects the confidence of investors around the world in digital commerce in India, which has continued to develop over the past year” as safe and convenient access to goods has become a priority, Flipkart said.
Last year, as a result of the previous round of funding, the company was worth $ 24.9 billion.
Flipkart reported that the number of its registered users has exceeded 350 million. The company is the majority owner of PhonePe, a payments application used by over 300 million people and processing over 1 billion transactions per month.
Walmart bought about 77% of Flipkart in 2018 for $ 16 billion, the largest acquisition in the company’s history. As a result of the latest round of funding, Walmart’s share in the company has decreased to about 75%, writes WSJ, citing a knowledgeable source.
Walmart shares lost 0.1% in preliminary trading on Monday.