Flipkart Reportedly Raising USD 1 Bn in a Down Round
Flipkart, the largest homegrown etailer is reportedly facing a markdown in its valuation as it aims to raise another round of investment. According to a report by TechCrunch, Flipkart is looking to raise up to $1 billion in funding.
Flipkart was valued at over $15 billion when it raised $700 million last year. According to reports, the company is finding it difficult to raise money at the same or higher valuation as it did in its last round.Some of the existing investors have already revised their valuations of the e-commerce giant. In February, Morgan Stanley marked down its stake in the company by 27 percent meaning an implied valuation of $11 billion.
According to Techcrunch sources, one potential investor is Chinese e-commerce giant Alibaba, which is reportedly asking for a valuation of less than $10 billion. According to Techcrunch sources, the next round is likely to fall between $11 billion to $14 billion.Coincidentally, Alibaba this week finalized a $3 billion loan, which could point to the company making more investments or acquisitions in the near future. Another interested investor being talked about is the Fosun Group of China.
There is no final words yet and Flipkart has not confirmed anything. Watch this space for more!