After facing so many difficulties in raising new funds, Flipkart has claimed that it has raised $1 Billion of funding and eye to raise other $1 Billion in coming few months.
According to inside people, on an agreement to hide their identification, the latest funding was secured by Flipkart at a valuation of about $10 billion. The investors of this round included Microsoft, Ebay, Paypal and Tencents Holdings. This brought down the valuation of India’s most highly valued startup to $10 Billion from previous $15 billion.
Since its inception in 2015, Flipkart is faced many consequences like valuation markdowns, product shutdowns, leadership shuffles and much more. When asked about the current devaluation, the company said they don’t comment on “market speculations” as a matter of policy.
The 10-year old Indian startup has serious competition from US-based Amazon and China-based Alibaba. Read more news about Flipkart.
Satish Meena, Delhi-based senior forecast analyst at Forrester Research said: “That Flipkart will get funded was never in doubt. The valuation of $10 billion is nothing to worry about, the funding environment is rather slow globally. The new funds put Flipkart in a strong position and this year’s going to be a direct face-off between Amazon and Flipkart. Whereas, Paytm is still trying to build itself up to scale.”
Hundreds of Indian Internet start-ups are losing money, cutting jobs and reducing valuations in exchange for fresh financing. However, the homegrown internet giant has managed to stick despite all odds. Read more about Indian Startups.