Indian e-commerce giant Flipkart, which is controlled by Walmart, is looking to raise $3bn from SoftBank and other investors as the e-commerce market swells.
Targeting a valuation of an eyewatering £40bn, Flipkart will also rally several sovereign wealth funds, Bloomberg first reported.
According to one of the sources involved in the private discussions, who opted not to be named, SoftBank could invest around $300m to $500m through its Vision Fund II.
Alongside Japan’s SoftBank, Flipkart is in talks with Singapore’s GIC, Canada Pension Plan Investment Board, and the Abu Dhabi Investment Authority, the sources said.
The funding rally will fuel Flipkart’s plans to launch an initial public offering (IPO), which is planned for next year.
The fourth quarter of this year was the original target for the e-commerce giant’s IPO, but it has since been pushed back as India has been gripped by delays amid its latest Covid wave.
Walmart has a 77 per cent stake in the company, which cost the US retail giant $16bn (£12.4bn) in May 2018.
Flipkart could not be immediately reached for comment by City A.M and SoftBank declined to comment.