Flipkart, the Indian e-commerce giant, which oversees the wal-mart, Inc. is in talks to raise at least $ 3 billion from investors, including SoftBank Group Corp,. and several sovereign wealth funds, according to people familiar with the matter.
Start with a target price of around $ 40 billion, is in talks with Singapore-based SNUB Pte., The investment Council of the Canadian Pension Plan, and the Abu Dhabi Investment Authority, said the people, to say, that by putting a name in its own right, since they are individual in nature. The japanese SoftBank, which in the past has backed Flipkart is back in his application, buy, Walmart is investing $ 300 million to $ 500 million of the total, through its Vision Fund, (II), one of the people said.
According to him, the Flipkart of people to raise additional capital prior to the ipo, which is planned for next year. The company is planning an initial public offering as early as the fourth quarter of this year, but those plans were delayed due to the corona virus outbreak in India.
Debates, the fundraising is not complete yet, and things could still change, the people said.
SoftBank and the STUPID thing refused to comment, and Flipkart are immediately responded to a request for comment.
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The E-commerce market has been growing rapidly over the past 18 months, and he was one of the clear beneficiary of this pandemic. Special offers Amazon.com Inc.", in order to compete with Flipkart in India, has increased by more than 70 per cent during this period of time, already, the market value is more than 1.6 trillion euros. dollars. The most successful initial public offering this year, south korea's Coupang, Inc. other, e-commerce, backed by SoftBank.
India has a huge potential for growth, as demonstrated during the pandemic. The population of 1.3 billion. people are rapid, and the use of digital technologies, with the rising standard of living, and the traditional retail is not a well-established markets such as the united states.
Wal-mart will pay $ 16 billion, representing an increase of 77 per cent of Flipkart
This will help in burning off the interest of the Flipkart investors in a $ 40 billion valuation of the target. If to the company, makes its debut in the public markets, and in the next year, as planned, it could be the largest initial public offering in the Indian start-up.
A deal would have been unlikely to be one of SoftBank itself. The japan-based company agreed to sell its stake in wal-mart, in order to Flipkart for the year 2018 net sales of approximately $ 1.5 billion over the course of the year.
Flipkart was founded in 2007 by two former Amazon engineers, and was acquired by wal-mart, 11 years later, resulting in the largest U.s. retail purchase. Since then, wal-mart has invested more than $ 1.5 billion in retail sales platforms, while that of the Amazon, which has invested billions in their own companies.
Today, Flipkart will include the Fashion, Retail sales, Myntra and Flipkart Wholesale, digital market, with a focus on small-and medium-sized businesses. Flipkart is also a significant portion of the seller to decide whether to PhonePe digital payments.
Since the pandemic began, Flipkart and its peers have expanded further into smaller Indian cities. The online retailer is increasingly seeing first-time internet users shop on Indian language versions of its service -- it currently offers 11 languages -- and also voice-enabled shopping. Annual revenues are at about $15 billion, according to one of the people, driven mostly by sales of electronics and fashion but, increasingly, also home furnishings, health care and groceries.
The potential funding could help Flipkart invest in its supply chain, technology and possible acquisitions as it battles rising competition. Besides Amazon, a pair of domestic entrants are backed by two of the country’s most powerful conglomerates, Reliance Industries and Tata Group.
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