Walmart-owned Flipkart Seeks Large Investment in Pre-IPO Funding Round
Flipkart Explores $2-2.5 Billion Pre-IPO Funding Round
Flipkart, India's largest e-commerce company, is reportedly exploring a pre-IPO funding round of $2-2.5 billion, according to multiple sources with direct knowledge of the matter. This move would mark the company's second significant private market raise in roughly two years, following Google's $350 million infusion in 2024.
The potential funding round is still in its early stages, and a final decision will depend on Walmart's willingness and approval. As Walmart holds over 80 percent of Flipkart, any fundraise will need to be approved by the US retailer. The company's group CEO, Kalyan Krishnamurthy, has personally met with investors in Singapore, the US, and London to test appetite for a private fundraise over the past months.
Flipkart's top deck has met with top US bankers, including Goldman Sachs, JP Morgan, Bank of America, Citigroup, and others, to explore a private market fundraise alongside IPO discussions. They have also engaged with leading Indian bankers, such as Axis Bank, JM Financial, and Kotak Mahindra Bank, to gauge investor interest.
| Banker | Meeting Status |
|---|---|
| Goldman Sachs | Met with Flipkart's top deck |
| JP Morgan | Declined to comment |
| Bank of America | Met with Flipkart's top deck |
| Citigroup | Met with Flipkart's top deck |
| Axis Bank | Engaged with Flipkart's top deck |
| JM Financial | Engaged with Flipkart's top deck |
| Kotak Mahindra Bank | Engaged with Flipkart's top deck |
| Capital Group | Met with Flipkart's CEO |
Flipkart was last valued at $36 billion during its fundraise from Google in May 2024. Raising privately at a higher valuation will also be beneficial for Walmart, as it can show an increase in value over the years. Separately, institutional investors have also independently engaged with Flipkart and shown willingness to invest in the company.
Flipkart is weighing a fresh fundraise at a time when the company is upping the ante on the e-commerce front as it looks to grow its lead over rivals such as Meesho and Amazon. The company is the market leader in the e-commerce market on a gross merchandise value (GMV) basis.
Flipkart's financials reveal a narrowing net loss of Rs 1,494.2 crore in FY25, compared to Rs 2,358.7 crore in FY24. The company's revenue from operations climbed 14.4 percent to Rs 20,493.3 crore from Rs 17,907.3 crore a year earlier, on the back of growing ad income.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Flipkart may raise $2-2.5 billion in a pre-IPO round, which could impact its valuation and future growth prospects.
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