Home >> Venture Capital >>

Flipkart raises $1 bn in down round: Report

Reuters

Flipkart Pvt Ltd, the Singapore-based holding company of India’s largest e-commerce marketplace, has reportedly raised $1 billion in a massive fundraising round.

The funds were secured at a down round that valued the company at $10 billion, the report added citing the same people. Flipkart had a peak valuation of $15 billion in 2015.

The investors in the current round included Microsoft, eBay and Tencent Holdings, the report said.

In an emailed response to VCCircle, a Flipkart spokesperson said, “As a company policy, we do not comment on market speculations.”

News about Flipkart’s imminent fundraising has been doing the rounds for a while now with various media platforms reporting it at various points in time.

In January, it was reported that Flipkart is likely to raise Rs 3,400-5,400 crore ($500-800 million) at a valuation of $10-12 billion.

Flipkart had a tumultuous 2016. The company struggled with exits of many top-level executives and a markdown in its valuation about a dozen times. A mutual fund managed by Fidelity Investments lowered the value of its investment in Flipkart by 36% to $5.56 billion. Morgan Stanley valued Flipkart at $5.57 billion in September 2016.

The latest valuation resetting comes on the heels of a major organisational restructuring in the second week of January when Flipkart appointed Kalyan Krishnamurthy, a former Tiger Global executive, as its new chief executive officer and made co-founder Binny Bansal group CEO.

The top-level shuffle, which comes exactly a year after Binny Bansal was made CEO, signals that the company is still striving to set the house in order even as it fights a tough battle against Amazon in online retailing.

Like this report? Sign up for our daily newsletter to get our top reports.

Morgan Stanley is an investment banking firm. It services include wealth management that includes cash management and lending solutions, institutional consulting, estate planning and wealth transfer; investment banking services focusing on mergers and acquisitions; and global capital market. The firm also offers investment strategies, access to banking services, philanthropy, investment solutions, private wealth management, sales and trading, investment banking, investment management, research prime, brokerage and institutional consulting services. The company was founded in 1935 and is based in New York, United States of America.

Post new Comment

Advertisement

Upcoming Events