Flipkart said on Tuesday it raised $1.2 billion in an investment led by its majority owner Walmart Inc, valuing the Indian e-commerce firm at $24.9 billion.
The investment round included other existing Flipkart shareholders, and the funding will be made in two tranches over the remainder of the fiscal year 2021, Flipkart said.
The Bengaluru-headquartered firm would use the funds for the “continued development of its e-commerce marketplace as India emerges from the Covid-19 crisis,” it said.
Walmart in 2018 paid $16 billion for a more than 70% stake in Flipkart, one of India’s best known startups, to better compete with Amazon.com Inc in an important growth market.
Flipkart did not disclose details on the size of Walmart’s stake in the company following the latest deal. It did not immediately respond to a request seeking further details.
Several Indian companies including e-commerce startups have lost weeks of revenues this year as the COVID-19 crisis resulted in lockdowns that restricted business activities.
Coronavirus cases have surged rapidly in recent weeks, making India the third worst hit nation, behind Brazil and the United States.