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Flipkart now valued at $11 bn after raising another $700 mn

Files in Singapore for conversion to a public company; third round of fund-raising this year attracts global investors; funds to be pumped into building superior technological expertise

BS Reporters  |  Mumbai 

Flipkart, India’s largest marketplace, has raised $700 million in fresh investment from existing as well as new investors Baillie Gifford, Greenoaks Capital, Steadview Capital, Price Associates and Qatar Investment Authority. The powerhouse, which is on a fund-raising spree, has raised funding for the third time in 2014. In May, it had raised $210 million (about Rs 1,200 crore). It had raised funding worth $1 billion (about Rs 6,000) in July.

The latest round of fund-raising has seen investment from existing stakeholders DST Global, GIC, ICONIQ Capital and Tiger Global. According to reports, the latest fund-raising has pegged Flipkart’s valuation at $11 billion. Flipkart’s rival had received $627 million from Japan's in October.



“As with previous raised, these will be used towards long-term strategic investments in India and to build a world-class technology company, delivering superior customer experiences,” the company said in a statement.

According to the statement, Ltd (incorporated in Singapore) has filed with the ACRA Singapore for conversion to a public company, which is a mandatory procedure for all where the number of shareholders exceeds 50.

Earlier, was expected to begin the new year with another round of funding, perhaps crossing the $1-billion figure. Flipkart’s previous round of fund-raising had come in July. At that time, co-founders Sachin Bansal and Binny Bansal had made a public announcement at a Bengaluru hotel, about a $1-billion fund raising, the largest so far in the Indian sector. A day later, Amazon had issued a statement that it was investing $2 billion in India.

2014 has been a year of blockbuster funding for companies, a $4-billion market. Beside Flipkart's $1-billion funding in July, had raised $627 million from Japanese investor in October.

Since no company in the country is listed, they hardly ever publicised their fund raising till recently. While talk of mega bucks being raised from foreign investors brought in the bracket of big league, it also meant a fair share of controversy to the players. Among other things, the foreign investment going into these has been under scrutiny. Foreign investment is not permitted in but there's no rule barring it in a marketplace model. Most entities in India are operating the marketplace model. Tax issues have also been raised in some states for hosting traders and keeping their inventory in some cases.

Yet, these are setting ambitious goals. is believed to be looking at an annual GMV (gross merchandise sale) of $4 billion by the end of March 2015 and much younger rival at $3 billion. While is believed to be hovering around a GMV of close to $3 billion, sources said the company touched $2 billion GMV around Diwali. Amazon, which started in India in 2013, is learnt to have crossed a GMV of $1 billion. Annual GMV is calculated on monthly average sales.

Flipkart, which started in 2007, had before the latest round of funding raised $1.76 billion. Its investors included Tiger Global, Accel Partners, DST Global, Naspers, Iconiq Capital, Sofina and Singapore sovereign wealth fund GIC. claims to have 26 million registered users, clocking over eight million daily visits. The valuations of players have been seen in a different light ever since the Chinese e-tailer Alibaba notched a $21.8-billion initial public offer of equity. Alibaba’s market capitalisation exceeds that of Amazon and eBay together.

Mukesh Bansal, who heads the fashion business at and is part of the core management team running the Flipkart-Myntra combine, had said in a recent interview with Business Standard that an Indian Alibaba was inevitable in the near future. Without naming any contenders, he had said the leader in India was expected to hold 70-80 per cent of the market in the next four to five years. In market share, Alibaba is at that point now, with an estimated 80 per cent of the Chinese market.

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Flipkart now valued at $11 bn after raising another $700 mn

Files in Singapore for conversion to a public company; third round of fund-raising this year attracts global investors; funds to be pumped into building superior technological expertise

Files in Singapore for conversion to a public company; third round of fund-raising this year attracts global investors Flipkart, India’s largest marketplace, has raised $700 million in fresh investment from existing as well as new investors Baillie Gifford, Greenoaks Capital, Steadview Capital, Price Associates and Qatar Investment Authority. The powerhouse, which is on a fund-raising spree, has raised funding for the third time in 2014. In May, it had raised $210 million (about Rs 1,200 crore). It had raised funding worth $1 billion (about Rs 6,000) in July.

The latest round of fund-raising has seen investment from existing stakeholders DST Global, GIC, ICONIQ Capital and Tiger Global. According to reports, the latest fund-raising has pegged Flipkart’s valuation at $11 billion. Flipkart’s rival had received $627 million from Japan's in October.

“As with previous raised, these will be used towards long-term strategic investments in India and to build a world-class technology company, delivering superior customer experiences,” the company said in a statement.

According to the statement, Ltd (incorporated in Singapore) has filed with the ACRA Singapore for conversion to a public company, which is a mandatory procedure for all where the number of shareholders exceeds 50.

Earlier, was expected to begin the new year with another round of funding, perhaps crossing the $1-billion figure. Flipkart’s previous round of fund-raising had come in July. At that time, co-founders Sachin Bansal and Binny Bansal had made a public announcement at a Bengaluru hotel, about a $1-billion fund raising, the largest so far in the Indian sector. A day later, Amazon had issued a statement that it was investing $2 billion in India.

2014 has been a year of blockbuster funding for companies, a $4-billion market. Beside Flipkart's $1-billion funding in July, had raised $627 million from Japanese investor in October.

Since no company in the country is listed, they hardly ever publicised their fund raising till recently. While talk of mega bucks being raised from foreign investors brought in the bracket of big league, it also meant a fair share of controversy to the players. Among other things, the foreign investment going into these has been under scrutiny. Foreign investment is not permitted in but there's no rule barring it in a marketplace model. Most entities in India are operating the marketplace model. Tax issues have also been raised in some states for hosting traders and keeping their inventory in some cases.

Yet, these are setting ambitious goals. is believed to be looking at an annual GMV (gross merchandise sale) of $4 billion by the end of March 2015 and much younger rival at $3 billion. While is believed to be hovering around a GMV of close to $3 billion, sources said the company touched $2 billion GMV around Diwali. Amazon, which started in India in 2013, is learnt to have crossed a GMV of $1 billion. Annual GMV is calculated on monthly average sales.

Flipkart, which started in 2007, had before the latest round of funding raised $1.76 billion. Its investors included Tiger Global, Accel Partners, DST Global, Naspers, Iconiq Capital, Sofina and Singapore sovereign wealth fund GIC. claims to have 26 million registered users, clocking over eight million daily visits. The valuations of players have been seen in a different light ever since the Chinese e-tailer Alibaba notched a $21.8-billion initial public offer of equity. Alibaba’s market capitalisation exceeds that of Amazon and eBay together.

Mukesh Bansal, who heads the fashion business at and is part of the core management team running the Flipkart-Myntra combine, had said in a recent interview with Business Standard that an Indian Alibaba was inevitable in the near future. Without naming any contenders, he had said the leader in India was expected to hold 70-80 per cent of the market in the next four to five years. In market share, Alibaba is at that point now, with an estimated 80 per cent of the Chinese market.
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Business Standard
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Flipkart now valued at $11 bn after raising another $700 mn

Files in Singapore for conversion to a public company; third round of fund-raising this year attracts global investors; funds to be pumped into building superior technological expertise

Flipkart, India’s largest marketplace, has raised $700 million in fresh investment from existing as well as new investors Baillie Gifford, Greenoaks Capital, Steadview Capital, Price Associates and Qatar Investment Authority. The powerhouse, which is on a fund-raising spree, has raised funding for the third time in 2014. In May, it had raised $210 million (about Rs 1,200 crore). It had raised funding worth $1 billion (about Rs 6,000) in July.

The latest round of fund-raising has seen investment from existing stakeholders DST Global, GIC, ICONIQ Capital and Tiger Global. According to reports, the latest fund-raising has pegged Flipkart’s valuation at $11 billion. Flipkart’s rival had received $627 million from Japan's in October.

“As with previous raised, these will be used towards long-term strategic investments in India and to build a world-class technology company, delivering superior customer experiences,” the company said in a statement.

According to the statement, Ltd (incorporated in Singapore) has filed with the ACRA Singapore for conversion to a public company, which is a mandatory procedure for all where the number of shareholders exceeds 50.

Earlier, was expected to begin the new year with another round of funding, perhaps crossing the $1-billion figure. Flipkart’s previous round of fund-raising had come in July. At that time, co-founders Sachin Bansal and Binny Bansal had made a public announcement at a Bengaluru hotel, about a $1-billion fund raising, the largest so far in the Indian sector. A day later, Amazon had issued a statement that it was investing $2 billion in India.

2014 has been a year of blockbuster funding for companies, a $4-billion market. Beside Flipkart's $1-billion funding in July, had raised $627 million from Japanese investor in October.

Since no company in the country is listed, they hardly ever publicised their fund raising till recently. While talk of mega bucks being raised from foreign investors brought in the bracket of big league, it also meant a fair share of controversy to the players. Among other things, the foreign investment going into these has been under scrutiny. Foreign investment is not permitted in but there's no rule barring it in a marketplace model. Most entities in India are operating the marketplace model. Tax issues have also been raised in some states for hosting traders and keeping their inventory in some cases.

Yet, these are setting ambitious goals. is believed to be looking at an annual GMV (gross merchandise sale) of $4 billion by the end of March 2015 and much younger rival at $3 billion. While is believed to be hovering around a GMV of close to $3 billion, sources said the company touched $2 billion GMV around Diwali. Amazon, which started in India in 2013, is learnt to have crossed a GMV of $1 billion. Annual GMV is calculated on monthly average sales.

Flipkart, which started in 2007, had before the latest round of funding raised $1.76 billion. Its investors included Tiger Global, Accel Partners, DST Global, Naspers, Iconiq Capital, Sofina and Singapore sovereign wealth fund GIC. claims to have 26 million registered users, clocking over eight million daily visits. The valuations of players have been seen in a different light ever since the Chinese e-tailer Alibaba notched a $21.8-billion initial public offer of equity. Alibaba’s market capitalisation exceeds that of Amazon and eBay together.

Mukesh Bansal, who heads the fashion business at and is part of the core management team running the Flipkart-Myntra combine, had said in a recent interview with Business Standard that an Indian Alibaba was inevitable in the near future. Without naming any contenders, he had said the leader in India was expected to hold 70-80 per cent of the market in the next four to five years. In market share, Alibaba is at that point now, with an estimated 80 per cent of the Chinese market.

image
Business Standard
177 22