The new round is expected to be a down round.. Last year, Flipkart raised about $700 Mn funding at a valuation of over $15 Bn, but investors will now have to invest in the company at a valuation below $15 Bn.
In February, Morgan Stanley marked down the value of Flipkart’s shares by 27%, bringing down the company’s valuation around $11 Bn.
Chinese giant Alibaba, also stakeholders in Snapdeal and Paytm, was rumored to be in talks to buy stake in Flipkart. However, after the recent drop of valuation, it seems like Alibaba would have to reassess their plan.
According to RoC filings, a couple of days back, Flipkart had secured a credit line of over $67 Mn (INR 450 Cr) from private sector lender HDFC Bank, and provided fixed deposits as security to the bank. Prior to this, Flipkart India and Flipkart Internet together had pledged assets worth INR 1,400 Cr. to two commercial banks – Deutsche Bank and Kotak Mahindra Bank.
Recently, Flipkart infused over $50 Mn (INR 338 Cr) in its online fashion portal Myntra, to boost its position in the fashion segment. Flipkart has also been focusing on various sectors; for instance, the recent launch of digital wallet. On the other side, Flipkart has shutdown its online groceries arm Nearby, which was considered to be the next big thing.
Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.