Flipkart has raised $700 million (approx 4,500 cr) from their existing investors at a valuation of $15 billion (around 96,000 Cr) according to a ET report. While Flipkart had raised 3 huge funding rounds in 2014, this is the first time they are doing so in year 2015.
The investors who participated in this round includes Steadview Capital, who had led Flipkart’s previous round. This round of funding is definitely a shot in the arm for Flipkart to take Amazon head on, who have not only beaten them in traffic numbers, but have also earmarked humongous $5 billion investment in Indian market.
An earlier ET report had stated that Flipkart has been in negotiations with New York-based hedge fund Tiger Global and other investors since early this year to raise a Billion dollar round. It is not yet clear whether this fund raise is part of that, or the negotiations with Tiger Global and other investors are still on.
Flipkart Funding till date
Including this, Flipkart has raised a total of 10 funding rounds aggregating a whopping 3.15 billion ( around Rs. 20,000 Crore). Their previous funding round of $700 million came in December 2014 from Steadview Capital, Baillie Gifford, Greenoaks Capital, T. Rowe Price Associates, Qatar Investment Authority, DST Global, GIC, ICONIQ Capital and Tiger Global.
|First Round||Accel India||2009||USD 1 Million|
|Second Round||Tiger Global||2010||USD 10 Million|
|Third Round||Tiger Global||June 2011||USD 20 Million|
|Fourth Round||Naspers / ICONIQ Capital||August 2012||USD 150 Million|
|Fifth Round||Naspers, Accel Partners, Tiger Global, and ICONIQ Capital||July 2013||USD 200 Million|
|Sixth Round||Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital, Tiger Global||Oct 2013||USD 160 Million|
|Seventh Round||DST Global||May 2014||USD 210 Million|
|Eighth Round||Tiger Global, DST Global, Accel Partners (plus other new investors)||July 2014||USD 1000 Million|
|Ninth Round||Steadview Capital, Baillie Gifford, Greenoaks Capital, T. Rowe Price Associates, Qatar Investment Authority, DST Global, GIC, ICONIQ Capital, Tiger Global.||December 2014||USD 700 Million|
|Tenth Round||Steadview Capital & Other existing investors||July 2015||USD 700 Million|
|Total||USD 3151 Million|
At a valuation of 96,000 crore, Flipkart is now amongst the top 25 most valuable companies in India. Just to give you an idea, here is valuation of some of the biggest businesses in India.
- Mahindra & Mahindra is valued at Rs. 82,667 crore
- Idea Cellular is valued at Rs. 62,o77 crore
- Cipla is valued at Rs. 53,751 crore
- Dabur India is valued at Rs. 52,880 crore
- Colgate is valued at Rs. 27,925 crore
Like we all know that while the valuations of most ecommerce companies is quite high, they have still not made any profits, infact have been registering huge losses year after year. But eCommerce companies (rather the VCs) are betting on future. Time will tell, whether such huge bets pay off or not!