Flipkart Set to Announce Fund-Raising of Over $1 Billion: Report

flipkart one billion fundingOver the last year, growth numbers for Flipkart have been steadily improving. Back in July last year it raised $200 million (around Rs. 1,100 crores) through private equity funding. Another round of funding in October saw it raise $160 million (roughly Rs. 9,500 crores), taking the total kitty to a cool $360 million (roughly Rs. 2,160 crores).

In March this year, Flipkart issued a statement that it was set to cross the $1 billion-mark in sales way ahead of its schedule. It eventually went on to buy Myntra -the online apparel retailer in May and even raised a further $210 million (roughly Rs. 1,173 crores) in a fresh round of funding where the private equity firm DST Global came on board as an investor.

Come July however, the e-commerce giant is reportedly all set to announce a fresh round of fund-raising valuing over $1 billion (Rs. 6,000 crore). The funding would make it the first Indian e-commerce company to raise the amount. According to reports, half of the amount will come from existing investors – Tiger Global, DST and Accel Partners – and the rest from several new investors – which include Singapore-based sovereign wealth fund GIC and the US-based firm T Rowe and Price. The deal, reported by the Economic Times, if announced should see the valuation of the e-commerce giant hit the $5-billion mark. The report also claim that it is amongst one of the biggest fund-raising this year globally.

While Flipkart has stayed mum on any announcements or talks about the deal, the report is quoting insiders to claiming the ‘deal is done’ and that the announcement ‘could be made in a week or two’. It is interesting to note that Flipkart recently scaled up operations to tie-up with SMEs to take on the likes of the US giant Amazon as well as local competitor Snapdeal.

Flipkart is certainly looking to expand operations further after having had crossed the $1 billion-mark. The online retailer will also look to strengthen the backend operations. It is also interesting to note that it has exclusive launch and selling deals with the likes of Motorola for its Moto E, Moto G and the Moto X line of smartphones as well as with Xiaomi for its recently launched Mi 3 smartphone.

With the online market in India heating up and with more and more users taking to shopping online, there is a great potential that equity firms from India and abroad are keen to seize. It will be interesting to see how and when Flipkart does actually make the announcement and how would it be utilising the money for its growth.

Source-NDTV

 

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