After the success of the company’s Big Billion Days sale, Flipkart is reportedly looking to raise a big funding round by the end of this year. This development was first reported by LiveMint, based on three people aware of the matter.
As per the people aware of this development, Flipkart will be raising this funding round from new investors. Earlier, it was reported that Walmart, the global retail giant, is ready to invest up to $1 billion to form a strategic partnership with the Indian e-commerce firm.
Further, the report says that this new fund-raising talks will be led by Flipkart’s executive chairman Sachin Bansal and Tiger Global Management, which is the largest investor in Flipkart.
One person aware of the matter, said,
The problem till now was that sales had slowed down and the (e-commerce) market also declined. In a young market like India, that is shocking. So Flipkart was in no shape to go for a fund-raise. The plan was to go all in on BBD and if that worked out, to do a fund-raise. BBD was phenomenal so you can expect them to hit the market in November-December.
This report of Flipkart raising up to $1 billion in new funding round adhere to the earlier reports of Walmart investing money in Flipkart. If this turns out to be true, it will be interesting to see the fight of Amazon and Walmart in India.
Walmart and Flipkart had held discussions when a team of Walmart visited India. However, it is not yet clear whether both companies are interested in forming a partnership or not.
The Bangalore-based startup had last raised funds in the middle of 2015, when Tiger Global Management and Qatar Investment Authority pumped in about $700 million into the company at a valuation of $15 billion. Since then, the e-commerce firm has been struggling to raise funding round due to various reasons. One of those reason is the valuation of the company.
Given that Jeff Bezos has committed a total of $5 billion in funding for Amazon in India, Flipkart needs access to cash in order to compete against Amazon. Flipkart, which was once ruling the e-commerce segment in India, is now facing a stiff competition from Amazon.
Amazon recently launched its Prime service in India and is gearing up to launch Prime Video in the country. For the service which is reportedly launching on 9th November, it has already roped in big heads from Bollywood. It has also formed partnership with many production houses, including Dharma Productions and Vishesh Films.