Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStartup

Flipkart in talks to raise about $800 million

The funding, however, would come at a much lower valuation of about USD 8-9 billion, sources close to the development said.

March 14, 2017 / 04:15 PM IST
The logo of India's largest online marketplace Flipkart is seen on a building in Bengaluru, India, April 22, 2015. After losing top engineering talent for years to America's tech heartland of Silicon Valley, India is luring them back as an e-commerce boom sparks a thriving start-up culture, unprecedented pay, and perks including free healthcare for in-laws. Picture taken April 22, 2015. To match INDIA-ECOMMERCE/WORKERS. REUTERS/Abhishek N. Chinnappa - RTX1BBUK

The logo of India's largest online marketplace Flipkart is seen on a building in Bengaluru, India, April 22, 2015. After losing top engineering talent for years to America's tech heartland of Silicon Valley, India is luring them back as an e-commerce boom sparks a thriving start-up culture, unprecedented pay, and perks including free healthcare for in-laws. Picture taken April 22, 2015. To match INDIA-ECOMMERCE/WORKERS. REUTERS/Abhishek N. Chinnappa - RTX1BBUK

E-commerce major Flipkart is in advanced stage of discussions to raise about USD 800 million to further strengthen its operations in a bid to take head on the competition from American rival Amazon.
The funding, however, would come at a much lower valuation of about USD 8-9 billion, sources close to the development said.
The e-tailer had last raised funds in July 2015 at a valuation of USD 15 billion.
The sources said that the fresh round would see participation from both existing and new investors.
When contacted, a Flipkart spokesperson said: "As a company policy, we do not comment on market speculations".
Till now, Flipkart is estimated to have raised over USD 3 billion with investments coming in from Tiger Global, DST Global, Steadview Capital and Accel Partners.
However, the company continues to report substantial losses as it pumps in funds into building logistics infrastructure and marketing blitz.
Flipkart has also seen several investors marking down their investments a number of times in the past few months.
Earlier this month, a mutual fund managed by Morgan Stanley had marked down the value of its holding in Flipkart for the fifth straight quarter, valuing the e-commerce major at USD 5.37 billion.
The fresh funding would help the company stave off competition from rivals like Amazon as well as latest entrant Alibaba.
The Chinese company has been gradually increasing its stake in Indian mobile wallets and e-commerce firm Paytm and is expected to announce its formal entry into the Indian market soon.
Amazon, on the other hand, has committed an investment of USD 5 billion in the Indian market.

Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day

first published: Mar 8, 2017 08:38 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347