Flipkart to raise $1billion ahead of US IPO

Flipkart plans to raise at least $1 billion ahead of a potential initial public offering in the US in the fourth quarter of 2021,reports Sourcing Journal. The investment total could reach as much as $2 billion.

Walmart currently owns 82 percent of Flipkart, leading a $1.2 billion financing round in July 2020 that brought its estimated valuation to $24.9 billion, but an IPO could possibly double that total to as much as $50 million. The potential new investor pool includes sovereign wealth funds, technology-focused financial groups, pension funds, long-term passive funds and private equity funds. Though the Flipkart fundraising is predominantly being targeted at new investors, existing ones like GIC of Singapore, Qatar Investment Authority have been sounded out.

Flipkart also aims to increase its value in other ways ahead of any potential public filing. The company acquired online travel technology company Cleartrip in April to strengthen its digital commerce offerings. Additionally, Flipkart partnered with Mahindra Logistics (MLL) as one of its key logistics partners to help fast track deployment of electric vehicles (EVs) across its logistics fleet in the country.