Flipkart’s business mantra seems to be ‘Show Me The Money’ in order to wade through the intense ecommerce competition and come out as a winner. As per the latest report by ET Retail, Flipkart is looking to raise approximately Rs 10,500 crore ($1.7 billion).
A source said, “They have begun searching for funds again, as the company feels accumulating funds, though not desperately needed at present, is a good strategy. Talks have just started and it may take a few months to finalise the intricacies.”
Post funding worth of Flipkart
If this round of funding comes through, then Flipkart will join the league of ‘high-priced companies’ and will also race ahead of established corporations like Godrej Consumer Products and Dabur India in terms of valuation. According to a report by Nomura, this expected investment will also make Flipkart worth $43 billion by 2018!
According to the sources, US-based Tiger Global Management is likely to invest up to $700 million, besides other existing and new investors. The latest surge of capital will be possibly utilized to buy money-spinning ventures, improve technology, rope in more sellers & offer financial assistance and provide steady discounts to consumers.
Flipkart’s fundraising record
Flipkart has always been in the news for bagging unbelievable funding and being backed by big investors. They had raised a whopping USD 700 million collectively in December last year with the help of investors like Steadview Capital, Baillie Gifford, Greenoaks Capital and Qatar Investment Authority. It was a record of sorts by any Indian startup to acquire $1.9 billion in three rounds of fundraising in a year, which Flipkart managed to do in 2014.
This new round of finance will certainly help Flipkart to retain its number one spot in the ecommerce sector. Especially with Amazon and Snapdeal in the picture who are serving as tough competitors after receiving financial support from investors like Softbank.