Flipkart Group on Tuesday said it had raised $1.2 billion equity, led by its majority shareholder Walmart.

In a statement, Flipkart said the fresh equity will “support continued development of its e-commerce marketplace” as India emerges from the COVID-19 crisis.

The fresh equity, which values Flipkart at $24.9 billion, comes amid potential competition from Reliance Industries’ JioMart, while rival Amazon had earlier this year committed $1 billion investment to help digitise small and medium businesses.

Two tranches

“The investment is led by Walmart, Flipkart Group’s majority owner, along with a group of existing shareholders and values the company at $24.9 billion post-money. It will be funded in two tranches over the remainder of the fiscal year,” Flipkart said.

Walmart Inc. had acquired 77% stake in Flipkart in 2018 for $16 billion, valuing the firm at $20.8 billion.

“Since Walmart’s initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services,” Flipkart CEO Kalyan Krishnamurthy said.

“We will continue innovating to bring the next 200 million Indian shoppers online,” he added.

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