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Flipkart looks to raise $3 billion at $35 billion valuation – Times of India


NEW DELHI: Walmart-backed Flipkart is in talks with several investors to raise about $3 billion in a round that could value the e-commerce giant at around $35 billion, ahead of its planned IPO next year.
Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA) and Japan’s SoftBank together could invest around $2 billion in the group, said three people familiar with the matter. The deal may be announced next month as the details are still being worked on.
“SoftBank may put in $500-550 million, while CPPIB or ADIA could lead the round,” said a person familiar with the development. “Existing investors such as GIC and Qatar Investment Authority could pool in with the rest of the funds.”
The development comes at a time when Bengaluru-headquartered Flipkart is trying to fend off a strong e-commerce push by deep-pocketed rivals such as US e-tailer Amazon, the Tata Group and Mukesh Ambani-led Reliance Industries (RIL).
“The funds will be used mainly to fuel supply chain growth and expansion of online grocery,” said a source. “There are pandemic-related tailwinds that have thrown up organic and inorganic growth opportunities. Flipkart may look at new categories such as epharmacy, online food delivery and healthcare.”
RIL, which raised $15 billion last year from several investors, including Silver Lake, Facebook, Google and KKR, has been doubling down on its e-commerce play with Jiomart and Ajio. Similarly, the Tata Group, which operates Tata Cliq, acquired 64.3% in online grocer BigBasket for $1.5-2 billion and followed it up by investing $75 million in health and fitness startup Curefit. It is also closing in on online pharmacy 1mg.
Flipkart, which raised $1.2 billion from parent Walmart last year, has been busy too. It has tried to expand its grocery play with Supermart and acquired online travel company Cleartrip. While it operates India’s largest fashion e-tailer Myntra, Flipkart bought a 27% stake in Arvind Youth Brands and forked out Rs 1,500 crore for an 8% stake in brick-and-mortar retailer Aditya Birla Fashion and Retail.
Queries sent to ADIA, Soft-Bank and the Flipkart Group did not elicit responses, while a CPPIB spokesperson said the organisation does not want to comment on the story.
“The timing of the fund raise is important and the new investors, including SoftBank, which has come back, creates a lot of credibility for the eventual valuation,” said the source.
SoftBank, which invested $2.5 billion in Flipkart, sold off its entire 21% stake to Walmart in 2018 when the latter acquired 77% in the homegrown e-tailer for around $16 billion.





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