ADQ, an Abu Dhabi state funding firm, is planning to invest $500 million in Flipkart, the Walmart-owned e-commerce giant. As per internal reports, the current funding raise is based on Flipkart’s plan to start its IPO in 2022.
ADQ Funding Raise and IPO Plan of Flipkart
ADQ is one of the newest investment firms in the UAE. In the latest leaked report, the investment agency is looking to invest a whopping amount of $500 million in Flipkart. ADQ was earlier known as Abu Dhabi Holdings Inc. This funding raise information is leaked by an insider asking not to be identified.
If the current deal is closed, Flipkart’s valuation will reach between $35 billion to $40 billion. The funding round will also be a great boost for Flipkart’s 2022 IPO plan.
Ahead of its IPO proceedings, the e-commerce giant is looking to raise around $3 billion in funding from investors including SoftBank Group Corp., Singapore’s GIC Pte, and Canada Pension Plan Investment Board, as per a Bloomberg report posted on June 7, 2021. The report is based on the internal discussions shared by people who are well aware of the funding raise meetings.
Flipkart has also included the Abu Dhabi Investment Authority, one of the emirate’s largest sovereign wealth funds, as the potential investor for the $3 billion funding raise.
After becoming above news public, more investors are showing interest to invest in Flipkart. That is why the funding may surge to $3.75 billion instead of $3 billion.
Walmart is super excited about starting Flipkart IPO to skyrocket its value. In recent days, e-commerce based IPO has been a clear winner. It is not unusual for debut IPOs to make their values double as per history.
For example, Coupang, a South Korean e-commerce giant, surged 41% in its IPO, and Ozon, a Russian e-commerce firm, saw a surge in its value by 34% on the first public offering day. As per financial experts’ analysis, Flipkart’s value may jump to $50 billion once it becomes public.
Middle Eastern Investment Firms as Global Investors!
In recent funding rounds, Middle Eastern funding agencies have shown more trust in Indian firms. Their investment has skyrocketed in last year.
Reliance Industries Limited was the main target of middle east funding firms. Investors including Mubadala, ADIA, and Saudi Arabia’s Public Investment Fund have injected $27 billion in Reliance Jio and Reliance Retail during last year, as per a Bloomberg report.
Globally, ADQ is one of the known investors since its inception in 2018. It has approximately $110 billion assets worldwide, as reported by Global SWF. The firm is currently the third-largest investor from the Middle East. ADIA ranks first with a $700 billion investment whereas Mubadala occupies the second position with around $230 billion worldwide investment.
Flipkart did not reveal anything related to current investment from ADQ. When contacted, ADQ was also unavailable for clarification about the $500 million investment in Flipkart.
