Flipkart
Flipkart
File photo

ADQ, formerly known as Abu Dhabi Developmental Holding Company, is in advanced stages of discussions to pump in about USD 400-500 million (around Rs 3,000 crore to Rs 3,660 crore) in e-commerce major Flipkart, according to sources.

The transaction could value Flipkart between USD 35-40 billion, sources close to the development said.

An announcement could be made in the next few weeks, they added.

One of the persons privy to the discussions said that Flipkart could raise about USD 3 billion or more as there is significant interest from investors.

The e-commerce major is also in discussions with SoftBank Group and some others as investors are keen on tapping into the digital commerce space that has seen significant growth during the pandemic, the person added.

Flipkart did not respond to queries, while comments could not be immediately elicited from ADQ.

After its USD 16 billion investment in Flipkart for 77 per cent stake in 2018, Walmart had led a USD 1.2 billion funding round in 2020 that valued the e-commerce company at USD 24.9 billion post-money. Flipkart is also said to be working on launching an initial public offering (IPO) next year.

E-commerce has seen strong growth in the country amid the pandemic as containment measures introduced millions to the convenience of online shopping, and prompted seasoned online shoppers to buy more.

Social distancing compulsions, massive smartphone base and reliable broadband have galvanised e-commerce uptake beyond metros, deep into smaller cities and towns.

These platforms are ramping up capacities and hiring to cater to the growth in order volumes.

A fresh infusion of capital will also provide Flipkart with more ammunition to compete against rivals like Amazon and Reliance's JioMart.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in