Flipkart aims to raise a whopping $1.4 billion in fresh funds

As the Indian online marketplace war heats up, it is reported that Flipkart aims to raise a further $1.4 billion in fresh funding, that would see its current $15.2 billion valuation, come closer to the $18 billion mark. Flipkart has not yet confirmed any funds negotiations, although the news is spreading like wildfire.

Potential Angels:

• Sands Capital management is planning to plough in $700 million

• Another $700 million is expected to flow in from existing shareholders

Burning desire

It is no secret that ecommerce marketplaces in India which include the likes of Flipkart, Snapdeal, Paytm and Amazon are building their brand equity and market share with an interesting deep discounting strategy, which is also burning a massive hole in the pocket. The quest for profitability is a distant dream right now, but who will blink first and move away from discounts is the billion dollar question.

An investor close to the Flipkart funds story said, “The issue is that their burn rate hasn’t come down and remains at $50-60 million per month in steady state.”