Abu Dhabi’s ADQ To Invest $ 400-50 Million In Flipkart

Abu Dhabi’s ADQ to invest $ 400-50 million in Flipkart, talks on the deal continue: Sources.

ADQ (formerly Abu Dhabi Developmental Holding Company) will invest $400-500 million (Rs 3,000 to Rs 3,660 crore) in leading e-commerce giant Flipkart.

Sources have given this information. Negotiations are on and the deal will put the total valuation of Flipkart in the range of $35-40 billion, they said.

The deal is likely to be announced in the next few weeks. Sources say that Flipkart is also preparing to launch an initial public offering (IPO) next year.

A person with knowledge of the ongoing talks about this deal said that Flipkart can raise about $3 billion or more. Investors are showing great interest in the company.

Abu Dhabi’s ADQ to invest in Flipkart: Flipkart is also in talks with SoftBank Group and a few others as investors look to take advantage of the digital commerce space.

The sector has grown rapidly during the pandemic. No response has been received from Flipkart in this regard. At the same time, ADQ also did not comment of any kind.

Notably, Walmart had invested $16 billion in 2018 for a 77 percent stake in Flipkart. In 2020, Walmart led a $1.2 billion financing round in Flipkart. Accordingly, the valuation of the company comes to $24.9 billion.

Social distancing, massive smartphone base and reliable broadband due to Corona have increased the demand for e-commerce in metros as well as small towns and cities.

Ecommerce platforms are increasing their capacity and hiring to meet the increase in order volume.

Private equity and venture capital investment halved in May, investment affected due to second wave of Corona.

There has been a major decline in private equity (PE) and venture capital (VC) investments. In May 2021, PE and VC investments fell by less than half compared to the previous month.

The investment stood at $3.6 billion in May, up from $7.5 billion in April. A year ago i.e. in May 2020, it was $ 5.4 billion. This has been revealed in a report by industry lobby IVCA and consultancy firm EY.

The report also mentioned the total data for the first five months of this year i.e. from January to May. PE and VC investments reached $20 billion during this period. This is double compared to the same period last year.

In this context, it can be said that the stance of investors remains strong about India. It is to be noted that since April, the country is battling the second wave of Covid-19.

In May, there was a local level lockdown in most of the states. Apart from this, last year i.e. in May, 2020, despite the national lockdown, an investment of $ 4.6 billion came in Jio Platforms.