Bangalore: Flipkart, India’s biggest retailer both online and offline is in advanced talks to raise $600-800 million, which will esteem the online retailer at $14-15 billion and turn the two co-founders as billionaires.
Founded in 2007 by former Amazon Inc. executives, Sachin Bansal and Binny Bansal with 400,000 rupees have come a long way with astounding growth and valuations. To gain a greater share of India’s retail ecommerce market that is estimated to grow 70 percent to $6 billion this year, the company is building a war chest. Even though, the company is well-capitalized in spite of burning massive amounts on advertising, hiring and discounts. Flipkart is striving hard and continues to raise capital to build itself as an immense capital cushion to stave off challenges from adversaries including Snapdeal and Amazon.
In 2014, the company had raised $1.9 billion and $1 billion from its existing investors Russian billionaire Yuri Milner’s DST Global, Accel partners and many others including New York based hedge fund, Tiger Global Management . The latest fund is likely to comprise new investors as well as existing. From the latest round the company’s pre-money valuation may increase to $14-15 billion. When Flipkart received $700 million in December, the company valued at nearly $11.5 billion.
Currently, the Bangalore based company stands among the most sought after private companies and expected to be considered as a next big online business after China based Alibaba which is valued more than $210 billion. In December, Flipkart’s competitor Snapdeal received $627 million from Softbank Group and is in talks to raise its second round of funding.