Valued at more than $40 billion, Wal-Mart's Indian e-commerce Flipkart is preparing to raise $2 billion to $3 billion.

On the morning of October 26, Beijing time, it was reported that Flipkart, an Indian e-commerce company backed by Wal-Mart, was preparing to raise $2 billion to $3 billion, with a valuation of more than $40 billion. The main reason for seeking financing is that Flipkart wants to expand its product line in India to cope with challengers.

Wal-Mart wants to bring strategic investors to Flipkart, but it is not resistant to large pure investment companies, according to people familiar with the matter. For the latest round of financing, Wal-Mart has not yet formally authorized investment bankers to look for strategic investors and larger global investors.

Flipkart is now valued at more than $40 billion, compared with $3.6 billion raised by Flipkart last year, when it was valued at about $37.6 billion. A Wal-Mart spokesman responded: "We do not comment on speculation."

Wal-Mart invested about $16 billion in Flipkart in 2018 for a 77% stake, and at the end of 2018 it said it might take Flipkart public within four years. It was reported in April that Flipkart had raised its IPO valuation target by 1/3 to $6 billion to $70 billion. Flipkart will not go public this year and aims to launch in the US stock market in 2023.