The e-commerce giant, Flipkart has managed to raise a sum of $3.6 billion in a recent fundraise. This fundraising was conducted given the company’s plan to list it in the public market by next year. The funding was led by GIC, CPP Investments, SoftBank Vision Fund 2, and Walmart and was backed by several investments from sovereign funds.
This round of fundraising also witnessed SoftBank’s return as a shareholder of the company. Kalyan Krishnamurthy, CEO of Flipkart Group had told that the investments assure the faith in the company’s ability to perform well in the market. It was reported that the company was only expecting about $1 billion through this fundraiser.
Both Flipkart and its competitor Amazon are hardly working to expand their business in India amidst a number of setbacks. Even now a majority of the retail sales occur through physical stores in India. It is expected to slowly decline and a greater number of online shoppers are expected by 2025. The threat posed by JioMart and the new e-commerce rules will also affect the performance of these online stores.
Flipkart is set to overcome these challenges. By now they have managed to ensure deliveries to more than 90% of pin codes in India. It has also included Indian languages in the app.
