Flipkart secures whopping Rs. 6000 Cr in latest funding

The Knight

The Knight

Knight is coming
Adept
Flipkart, the big daddy of the Indian e-commerce is about to get bigger. The company has raised eye popping $1 billion (Rs. 6000 Crore) in the latest round of funding from new and existing investors, according to a report from the Economic Times.

The report suggests that half of the amount will come from existing investors Tiger Global, Russian billionaire Yuri Milner’s DST and Accel Partners while the rest will come from several new investors. Flipkart is expected to announce the funding by next week as per the report. The total amount of funding raised by the company now stands at over $1.7 billion, valuing the online retailer at over $5 billion. In May Flipkart secured $210 million from DST Global and others in funding.

Started as a book retailer in 2007, Flipkart gradually snowballed into a full-fledged e-commerce behemoth by expanding to categories like electronics, home decor, fashion apparel and lifestyle. The company is clear leader in the Indian e-commerce scenario but has been facing tough competition from other strong players like Amazon, Snapdeal and eBay for some time now. The company acquired fashion and lifestyle portal Myntra in May to further strengthen its position. It also crossed $1 Billion sales in March this year.

Source: Economic Times
 
Meanwhile, Amazon announces an additional investment of $2 billion in India: http://www.amazon.in/gp/feature.htm...rd_t=101&pf_rd_p=516940287&pf_rd_i=1592137031

If it's money we're talking about, Amazon can keep this up for a long time. Flipkart's investors will expect an exit strategy at some point or the other, but will they be able to find someone who'll fulfil their trumped up expectations? Can't say for sure. Next best option is an IPO. Exciting time for e-commerce space in India, and not even a fraction of the citizens use it. The growth potential is huge.
 
blkrb0t said:
Meanwhile, Amazon announces an additional investment of $2 billion in India: http://www.amazon.in/gp/feature.htm...rd_t=101&pf_rd_p=516940287&pf_rd_i=1592137031

If it's money we're talking about, Amazon can keep this up for a long time. Flipkart's investors will expect an exit strategy at some point or the other, but will they be able to find someone who'll fulfil their trumped up expectations? Can't say for sure. Next best option is an IPO. Exciting time for e-commerce space in India, and not even a fraction of the citizens use it. The growth potential is huge.
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Absolutely. And they cannot compete with Amazon only on monetary terms. Amazon plays a long game, a very very long game. With very deep pockets. And Bezos is a ruthless competitor and a workaholic. FK cannot compete on money alone.
 
ayanavish said:
Good. Hopefully Amazon doesn't buy them if FDI restrictions are put off.
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The additional investment just after Flipkart raised funding shows that they are not interested in buying them out. Amazon will fight it till the end in the Indian market. They have enough breathing space to make a dent. They've already started eating into Flipkart's marketshare. Unlike China and Russia, where foreign companies are shunned by the government, India is vastly different.

Best thing about this neck-to-neck competition is that consumers will be able to get the best deals online. Also expect stellar customer support, lest they lose their long standing relationship with their customers in an instant.
 
I was quite interested in case it would have gone public. Surely would have invested a 10% of my portfolio for long term.

Would have been a good story (legendary, may be) after a decade to tell...
 
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