(Adds aspects on Walmart (NYSE:)’s previously investment in Flipkart, COVID-19’s financial fallout)
BENGALURU, July 14 (Reuters) – Flipkart stated on Tuesday it raised $1.2 billion in an investment led by its greater part operator Walmart Inc WMT.N , valuing the Indian e-commerce business at $24.9 billion.
The investment spherical provided other present Flipkart shareholders, and the funding will be produced in two tranches in excess of the remainder of the fiscal year 2021, Flipkart reported.
The Bengaluru-headquartered firm would use the cash for the “continued progress of its e-commerce marketplace as India emerges from the Covid-19 crisis,” it claimed.
Walmart in 2018 paid $16 billion for a more than 70% stake in Flipkart, 1 of India’s finest regarded startups, to superior compete with Amazon.com Inc in an critical expansion market.
Flipkart did not disclose details on the measurement of Walmart’s stake in the corporation following the most current offer. It did not promptly reply to a request seeking even more information.
Numerous Indian companies such as e-commerce startups have misplaced weeks of revenues this yr as the COVID-19 crisis resulted in lockdowns that restricted small business functions.
Coronavirus conditions have surged speedily in modern months, creating India the third worst hit nation, driving Brazil and the United States.