Sachin Bansal and Binny Bansal co-founders of Flipkart – the posterboy of Indian startup ecosystem – have now lost their billionaire status. Flipkart announced that it had raised $1.4 Bn funding from Tencent, eBay and Microsoft yesterday.
As per a company statement, the latest investment was done at a post-transaction valuation of $11.6 Bn.
As per a recent Mint report, the co-founders now have a net worth of $650 Mn-$750 Mn each. This implies that they both own about 6.5% each of Flipkart stock.
In September 2015, both appeared on the Forbes’ India rich list, as the country’s first ecommerce billionaires at number 86. At the time, they reportedly had a net worth of $ 1.3 Bn each, indicating a holding of 8.7% stake each in Flipkart. The Bansal duo did not make it to the Forbes List of Billionaires this year.
In FY 2014-15, the company generated $115.9 Mn (INR 772.5 Cr) revenue, against $164.5 Mn (INR 1,096 Cr) loss. This was the year when it raised three major rounds – $210 Mn Series F, $1 Bn Series G, and $700 Mn Series H, raising its valuation to $15 Bn.
Flipkart, which has now been in business for ten years, saw over 18 markdowns in valuation since 2015.
Flipkart also went through a major reshuffle in its organisation structure at the start of 2016. In January 2016, Sachin Bansal stepped down from his position as CEO, citing lack of performance and was replaced by Binny Bansal. However, one year later Kalyan Krishnamurthy who was earlier a part of one of Flipkart’s major investors, Tiger Global, was appointed as the company CEO in January 2017.
As part of the latest funding deal, in exchange for an equity stake in Flipkart, eBay will make a cash investment in Flipkart and it will also sell its eBay.in business to Flipkart.
The ecommerce marketplace is also reportedly in talks to acquire fellow contender Snapdeal. Last week, it was reported that amidst piling losses, complaints, and revoked funding offers, Snapdeal’s biggest backer SoftBank proposed the sale of the company to Flipkart. Interestingly, eBay had led a $50 Mn financing round in Snapdeal in 2013.
If the deal comes through, Flipkart will be able to brave a strong front against global ecommerce giants Amazon and Alibaba on home turf.
