Walmart (WMT)-owned Flipkart soared in value to nearly $38 billion after its latest fundraising round, as the Indian e-commerce startup looks to IPO. Walmart stock fell.
Flipkart said Monday it has raised $3.6 billion in new funds from a group of investors including Walmart and Japan’s Softbank.
The deal values Flipkart at $37.6 billion, it said. An earlier funding round roughly a year ago valued Flipkart, which was founded in October 2007, at $24.9 billion.
“This investment reflects global investor confidence in digital commerce in India, which has continued to accelerate over the last year” amid the coronavirus pandemic, Flipkart said in a statement.
Walmart shares dipped 0.4% to 139.88 on the stock market today. Walmart stock is testing the 50-day line and below the 200-day line. Amazon stock eased 0.3%, Costco (COST) lost 0.7%, and Target (TGT) rose 1%.
Both Walmart and Amazon in India compete against Reliance Retail, owned by Asia’s richest man, Mukesh Ambani.
Walmart and Amazon together control roughly 60% of India’s booming e-commerce market. In 2018, Walmart bought a 77% stake in Flipkart for $16 billion.
Like Amazon, Flipkart began by selling books then moved into electronic gadgets, clothing and more.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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