In an attempt to expand its eCommerce reach in India, Walmart is considering raising up to $3 billion for its eCommerce brand Flipkart, currently at a valuation of $40 billion.
In news reported by Reuters on Tuesday (Oct 25), Walmart is looking to bring in strategic investors for the Indian company, but is also open to the possibility of selling the company to a large investment firm.
As one of the world’s largest retailers, Walmart is in a good position to expand its investment in Flipkart’s India operations, with eCommerce spending on the rise when it comes to customers feeling satisfied at checkout, according to PYMNTS research.
In 2018, Walmart acquired a 77% stake in Flipkart for about $16 billion. Later that year, the company stated that it could take Flipkart public in four years.
These plans shifted to a U.S. IPO listing in 2023, Reuters reported in April, with an internally raised IPO valuation target to as high as $70 billion.
A recent PYMNTS research report, “Navigating The New eCommerce Landscape: Modernizing Payments For Marketplaces, Gaming, The Metaverse And Beyond,” found that the growing eCommerce landscape requires seamless payments in every virtual environment.
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Walmart knows this and is working toward further developing its eCommerce footprint in the South Asian region by looking into growing its stake in Flipkart.
PYMNTS has reached out to Walmart for comment.
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