Walmart’s Hot E-Commerce Unit Surges In Value Ahead Of IPO

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.

In March, the Amazon (AMZN) rival in India was said to be seeking a $35 billion valuation while looking to list in the U.S. via a blank-check merger or initial public offering.

“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.

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Walmart Stock

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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