Flipkart to Raise USD 1.2 billion From Walmart at Valuation of USD 21 billion The US based retail giant had acquired 77 per cent stake in Flipkart Group for USD 16 billion in May 2018, valuing the latter at USD 21 billion

Home grown e-commerce giant Flipkart on Tuesday closed USD 1.2 billion equity round led by its majority owner Walmart.

The US based retail giant had acquired 77 per cent stake in Flipkart Group for USD 16 billion in May 2018, valuing the latter at USD 21 billion.

The fresh capital infusion, which also saw participation from a group of Flipkart's existing shareholders, values the company at USD 24.9 billion. It will be funded in two tranches over the remainder of the fiscal year, the company said in a statement.

"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," Kalyan Krishnamurthy, CEO, Flipkart 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," he added.

This deal comes at a time when Jio Platforms, a digital services unit of Reliance Industries, has raised about INR 1.18 lakh crore from 13 leading global investors, including Facebook and Private Equity players like Vista and Silver Lake to further its plan of creating new opportunities for small businesses by enabling them to reach more customers digitally. Several news reports are suggesting that Google is in talks to pump around USD 4 billion into Jio Platforms.

Also Read: Facebook Picks 9.9% Stake in Reliance Jio for $5.7 bn

The latest investment by Walmart in Flipkart aims "to support continued development of its eCommerce marketplace as India emerges from the Covid-19 crisis," the company stated.