India’s Flipkart said in early talks to raise $1b ahead of IPO

FILE PHOTO: The logo of Flipkart is seen on the company's office in Bengaluru, India, May 9, 2018. REUTERS/Abhishek N. Chinnappa/File photo

Walmart Inc-owned Indian e-commerce firm Flipkart is in early talks with investors to raise at least $1 billion, the Economic Times reported on Tuesday, citing people familiar with the matter.

Flipkart’s fund raise plans come at a time when the company is considering an initial public offering (IPO), while it battles players including Amazon.com’s local unit and billionaire Mukesh Ambani-owned Reliance Retails’ JioMart amid a pandemic that has seen demand for online services skyrocket.

Reuters first reported in September that Bengaluru-based Flipkart was preparing for an IPO overseas as early as 2021, which could value the firm at as much as $50 billion.

Flipkart raised $1.2 billion in fresh funding last year, with Walmart as its lead investor. That round valued Flipkart, which counts China’s Tencent, U.S. hedge fund Tiger Global, and Microsoft among its investors, at $24.9 billion.

“The capital raise is not being positioned as pre-IPO but for expansion,” an executive involved in the process told the Economic Times, adding that the capital raise could go up to $2 billion.

Flipkart did not immediately respond to a Reuters request for comment.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.