Flipkart Raises $1 Billion At $10 Billion Valuation

Rodiano Bonacci
Marzo 20, 2017

By Saritha RaiFlipkart Online Services Pvt has completed a $1 billion fundraising and aims to raise as much as $1 billion more over the next few months, according to people familiar with the matter, giving India's largest e-commerce company capital to battle back against rising competition.

The funds were secured at a down round that valued the company at $10 billion, the report added citing the same people.

The fundraising round, which closed last week, includes Microsoft Corp., EBay Inc. and Tencent Holdings Ltd, according to the report.

Late a year ago, a Morgan Stanley mutual fund, revised down the Flipkart's valuation by a whopping 38 per cent to $5.54 billion, in what was its fourth markdown by the fund in nine months.

Finally, Flipkart seems to be ending its fund-drought phase, which has been going on since previous year.

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

Flipkart had a tumultuous 2016. 5 billion decline in its valuation as recorded in 2015. A mutual fund managed by Fidelity Investments lowered the value of its investment in Flipkart by 36% to $5.56 billion.

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.

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