Carlyle-backed Flipkart Plans $1bn Fundraising Ahead of IPO

Carlyle-backed Flipkart is in talks with a clutch of investors to raise $1bn, while it deliberates an initial public offering in the USA later this year. Depending on the investor appetite, fundraising could double to up to $2bn.

This round of fundraising is largely for company expansion, and catalysing Flipkart valuation ahead of its IPO. This will also enable the e-commerce to compete with its deep-pocketed rivals like Reliance Retail. and Amazon.com Inc. 

A new and existing pool of investors have been sounded out, these include pension funds, wealth funds, tech-focused financial groups, Private equity funds, long-term passive funds, as well as private equity funds. These include Qatar Investment Authority, GIC of Singapore, CDPQ, CPPIB, and Carlyle. Goldman Sachs and JPMorgan are advisers in the fundraise, which may or may not materialise.

It is, however, a matter of surprise that Flipkart’s parent company, Walmart is not infusing fresh capital itself, but focusing on external funding. In 2018, Walmart had acquired 77% of Flipkart for $16bn, standing at $21bn in valuation. At that time, the US retailer had pledged to take Flipkart public in four years. Flipkart is likely to be valued at $30bn after this round of investment, and $35-40bn after the IPO goes public. 

Source: BW Disrupt