ADQ From Abu Dhabi In Talks To Invest $500 Million In Flipkart


Flipkart on April 6, Tuesday, announced about its plans to come up with their initial public offering during the last quarter of the year. For this, the company has been actively looking to raise funds in various funding rounds. One of the manes that could potentially be added to the list of investors in the company is Abu Dhabi sovereign fund ADQ.

A person familiar to the matter, told to the media regarding the deal which is in talks. According to the source, ADQ is planning to make an investment of $500 million in the Bengaluru based e-commerce giant, which is now owned by America’s commercial company- Walmart.

The source has requested to stay anonymous as the information is still private and hasn’t been made public yet.

Abu Dhabi Developmental Holding Company PJSC (ADQ), is a State Owned Enterprise in the Abu Dhabi emirate of the United Arab Emirates. The state company is currently in talks to invest funds into the e-commerce giant which can value the company at $35 billion to $40 billion.

The fund raising is being planned to be done after the IPO of the company is rolled out, which can take place anytime in the last quarter of the year. It can be assumed that the deal can take place in the early 2022.

The minimum aim of the company is to raise the IPO of $3 million. However, if the company is successful in raising funds, the IPO can go up to $3.75 million, as the investors seem to show quite an interest in the fundings.

The deal is in the initial stage of talks and considerations are still going on, hence there are chances of the deal to fall apart too.

The spokesperson from Flipkart declined to respond to the request for any sorts of comments that were made outside business hours. A representative from ADQ too, did not respond to the request for comment right away.

The Indian e-commerce giant is currently seeking to raise at least $3 billion worth of funds which comes from a group of investors. This investors’ group include Japan’s SoftBank Group Corporation, Singapore’s GIC Pte and Canada Pension Plan Investment Board, reported Bloomberg, a news agency.

The funding round group may also include Abu Dhabi Investment Authority, which is one of the emirate’s largest sovereign wealth funds, the resources told the news agency.

ADQ, which was earlier known as Abu Dhabi Development Holding Co., has been one of the most active investors from the Middle Eastern region since its establishment in the year 2018.