According to an announcement, Flipkart has filed an application with Singapore based companies’ regulator ACRA to become a public company after raising USD 700 million for long term strategic investments in India. According to a statement released, “Flipkart Limited (incorporated at Singapore) has filed with ACRA Singapore for conversion to a Public Company. This is a mandatory procedure for all companies where the number of shareholders exceeds 50.”
What was the agenda?
With new investors on the company’s board: Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment Authority, Flipkart has raised USD 700 million. Flipkart shared its agenda behind this: “This filing ensures we are in compliance with the laws of Singapore and is in no way indicative of any upcoming IPO or of any corporate activity that the company is engaged in either in Singapore or any other part of the world”.
It is believed that the funds raised will be used towards long-term strategic investments in India and to build an internationally-renowned technology company that provides excellent customer service and an outstanding shopping experience.
What does this mean?
Flipkart is already giving global online marketplaces like eBay and Amazon tough competition in Asia. With these impressive investments, it may be possible for Flipkart to move into the league of globally-renowned online marketplaces. That is an excellent inspiration for those who are worried about global ecommerce giants dominating Asia and draining away all the wealth opportunities. Flipkart’s big break is a positive sign about the possibility that India can have a share in the global ecommerce market as well.