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Online marketplace Flipkart is believed to be in talks to raise around $ 600 million (about Rs 3,750 crore) from a group of investors.
The eCommerce firm, currently being valued at around $11.5—12 billion (about Rs 71,000—75,000 crore) is also looking at a higher valuation, people in know of the development said.
“Flipkart at present is in talks with a clutch of investors to raise somewhere in the range of $ 600 million.
It is also looking at a higher valuation than its present $ 11.5—12 billion,” sources said.
When contacted, Flipkart did not offer any comments.
On higher valuation, they said the Bangalore—based firm’s bid for a higher valuation will depend on the ongoing fund raising talks with the investors.
In December last, Flipkart raised $ 700 million and in July 2014 it raised $ 1 billion, the largest by any eCommerce firm in the country. So far it has raised over $ 2 billion.
Its investors include Qatar Investment Authority, Baillie Gifford, Greenoaks Capital, Steadview Capital, T Rowe Price Associates, DST Global, GIC, ICONIQ Capital and Tiger Global.
Tiger Global is Flipkart’s largest shareholder followed by Accel Partners. Co—founders Sachin and Binny Bansal hold a little over 8 per cent stake in the company.
On the firm’s cash piling spree, market sources said the company wants to maintain ample cash as it goes around ramping up its infrastructure and adding more sellers to its platform to take on domestic rivals such as Snapdeal and global ones like as Amazon.
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