Walmart Inc WMT-owned Indian e-commerce retailer Flipkart said on Monday it has raised $3.6 billion from a consortium of investors including Japan’s SoftBank Group SFTBY, which returns as a financial backer.
What Happened: The fresh fundraise values the online retailer at $37.6 billion and comes at a time as the Bengaluru-based startup is exploring listing in the United States.
Walmart bought a controlling stake in Flipkart three years ago for $16 billion.
Besides SoftBank, investment was led by GIC, Canada Pension Plan Investment Board, and Walmart, the company said.
Why It Matters: Flipkart has more than 350 million registered users and plans to increase investments in technology, supply chain and infrastructure as it focuses on categories such as fashion, travel and groceries.
Judith McKenna, president and CEO of Walmart International, said in a statement that “Flipkart is a great business whose growth and potential mirrors that of India as a whole — that’s why we invested in 2018 and why we continue to invest today.”
Flipkart’s main rival in the country is Amazon.com Inc AMZN, which has poured billions of dollars and made strides in the Indian e-commerce landscape with its offerings.
Price Action: Walmart shares closed 0.51% higher at $140.30 on Friday.
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