As we know the only thing that is constant is change and Flipkart’s fundraising figure firmly believes in that. After $1.5 billion, latest reports state that the Indian ecommerce biggie Flipkart is all set to raise $1 billion at a valuation of $10 billion.
Flipkart’s biggest fundraising exercise ever?
The last time the ecommerce unicorn raised $1 billion was back in July 2014, which was the largest amount raised in a single funding round. In December 2014, the company raised another $700 million at $12 billion valuation. Flipkart last raised funds ($700 million) in July 2015.
Industry watchers think that the investors would value Flipkart at $8 billion and not $10-12 billion that the etailer is expecting. But it still would be one of the biggest funding rounds for the online marketplace.
The details about the potential investors (existing and new) are still not out.
Other ecommerce start-ups too are hoping that Flipkart scores big
Flipkart is in dire need of funds and some good news after a series of bad news. So the anxiety over the upcoming funding round is understandable.
But not just Flipkart, even other ecommerce companies are waiting with bated breath to see how much money the investors pour into the Bansals-led company.
For instance when a logistics start-up owner approached investors for funds, he was told,
“Let’s wait for Flipkart to announce its funding round, post which we will look to deploy capital in India.”
According to industry experts, the final figure of Flipkart’s fundraising round would determine the fate of the other ecommerce firms. If the ecommerce leader doesn’t grab billion dollars, then investors won’t express any interest in other firms, according to experts.
“Overall, Flipkart raising more capital will signal to the market that there is a coalition coming together to stop Amazon from trying to win the market based on their financial prowess alone. Unlike an Amazon or Uber, Indian companies have to develop their products and systems inside the country, which means they have to invest upfront, something which the foreign firms have done in their home markets already. Since our ecosystem doesn’t have local investors (our biggest conglomerates don’t invest in Indian startups), founders have to look at international investors,” shared a start-up founder.
Often called as the flag-bearer of the Indian ecommerce industry, Flipkart has too much burden on its shoulders. Would the unicorn rise to the challenge?