Private Equity

Private Equity Fund Investments

Flipkart raises $3.6 B from GIC, CPPIB, Softbank, Walmart, others

Press Release   Economic Times,   PTI  

Bengaluru-based consumer internet firm Flipkart has raised USD 3.6 billion in a round led by financial investors GIC, Canada Pension Plan Investment Board (CPPIB), SoftBank Vision Fund 2 and Walmart, along with other sovereign funds including Abu Dhabi's DisruptAD, Qatar Investment Authority, and Khazanah Nasional Berhad, as well as other global investors including Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global. The round values the group at USD 37.6 billion post-money. JP Morgan Securities (Asia Pacific) and Goldman Sachs served as placement agents to Flipkart for this transaction. Hogan Lovells and Shardul Amarchand Mangaldas served as legal counsels. The round marks the return of Japan's SoftBank to Flipkart's cap table since its exit three years ago. SoftBank invested USD 2.5 billion in Flipkart in 2017, selling its stake to Walmart a year later for USD 4 billion. Flipkart will use the fresh capital to expand operations and gain market share. The web retailer will look to deploy the capital in grocery, fashion and consumables and also to enhance its supply chain and logistics network. Walmart is expected to hold a 74-75% stake in Flipkart after the funding round. Flipkart will undertake a buyback of employee stock options worth about INR 600 crore. Employees will be able to liquidate up to 10% of their vested shares depending on the individual's holding pattern. About 6,000 employees are expected to benefit from the buyback.

From the Venture Intelligence PE-VC Deal Database: Between Oct-09 and Jul-20, Flipkart had raised over $7-B from Tencent, Qatar Investment Authority, SoftBank, Prosus Ventures, M12, Steadview Capital, Tiger Global, Greenoaks Capital, DST Global, Iconiq Capital, Sofina, TR Capital, Accel India, GIC, Morgan Stanley, Premjiinvest, Chiratae Ventures, Kalaari Capital, Vulcan Capital, Dragoneer Investment Group, Helion Ventures and others. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)