Flipkart's majority shareholder, Walmart, has invested $1.2 billion in the e-commerce platform along with other existing investors valuing the firm at $24.9 billion. This is a $3.9 billion jump from 2018, when Walmart invested $16 billion in the company to acquire a majority stake. The investment will be done in two tranches till the remainder of the year.
“We're grateful for the strong backing of our shareholders as we continue to build our platform and serve the growing needs of Indian consumers during these challenging times,” Flipkart CEO Kalyan Krishnamurthy said.
“Since Walmart's initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers.
“We will continue innovating to bring the next 200 million Indian shoppers online,” Krishnamurthy added.
Founded in 2007, the Flipkart group includes Flipkart, digital payments platform PhonePe, fashion specialty site Myntra and logistics and delivery service eKart, which focuses on solving the last mile delivery in India's tier II and tier III cities.
Flipkart recently surpassed 1.5 billion visits per month; it reported 45 percent growth in monthly active customers and 30 percent growth in transactions per customer for FY20.
The company claims to be democratising e-commerce by providing sellers and MSMEs access to a national market and by investing in technology such as voice assistants and local language interfaces to help make shopping easier for non-English speaking customers.
Currently, Flipkart offers 150 million products across more than 80 categories. PhonePe recently reported annualised total payments value (TPV) of $180 billion on more than 500 million monthly transactions.
“Flipkart continues to leverage its culture of innovation to accelerate growth and enable millions of customers, sellers, merchants and small businesses to prosper and be a part of India's digital transformation,” said Judith McKenna, president and CEO of Walmart International.
“Kalyan and team have a clear vision and are relentlessly focused on giving Indians frictionless choice in how they shop and sell online. We're excited to see what the future holds as they continue their journey to become India's most trusted e-commerce marketplace,” she added.