A Big Billion Day for Flipkart: Raises $1.4 Billion To Challenge Amazon

Must Read

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the...

The poster boy of Indian eCommerce industry, Flipkart has raised $1.4 billion from some of the tech majors, including Microsoft and Tencent. This is the largest round of funding ever raised by any Indian startup till date. The major highlights of this rounds, besides Microsoft and Chinese major Tencent participation, is the acquisition of eBay India by Flipkart. The Indian e-commerce major has agreed to acquire eBay India in exchange for equity and cash investment.

With the fresh round of funding, the valuation of Flipkart has soared to $11.6 billion from the speculated valuation of less than $10 billion in the last few months. The new valuation, however, is way lesser than $15.2 billion Flipkart was valued at while raising $700 million in 2015.

After raising $1.4 billion in the latest round, Flipkart raised $4.55 billion in total till date.

Advertisements

The participation of eBay and Microsoft is considered as a strategic move. The acquisition of eBay India has helped eBay to put the struggling arm of its business in India under the safe zone. On the other hand, Microsoft got a better deal by onboarding Flipkart on Azure. In spite of Flipkart acquiring eBay India, the latter one will continue as an independent entity.

“This shows that once valuations are corrected, there is enough money in the market to raise funds for Indian internet companies,” said Arvind Singhal, chairman and managing director of Technopak, a retail consultancy.

After the acqu-fund deal, there are two aspects that have emerged clearly:

  • The consolidation and correction in the eCommerce industry have started.
  • The price war between Flipkart and Amazon will continue for a longer duration now.

In June last year, Jeff Bezos fueled the fire after announcing $5 billion investment in Amazon India to keep the war going for the next few years. The latest round of funding will help Flipkart to build a war chest, especially after the market consolidation. If things fall in favour of Softbank, Flipkart will soon acquire Snapdeal to control the biggest chunk of Indian e-commerce market. The possible acquisition will also help Flipkart to foray into highly promising wallet business and add up new revenue arm by getting Freecharge under the umbrella.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

₹90 Crore Per Hour: That’s What Mukesh Ambani Added To His Wealth During COVID Era

Today the "IIFL Wealth Hurun India Rich List 2020" was released and guess who kept maintained his...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared that they are in the...

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming to make the most of...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

New Android Malware Steals Your Banking Credentials And Let Hackers Access Your Smartphone

If you are an active user of banking apps on your Android smartphone, you must pay close attention to it.

An IT Service Help Desk Is Essential To Drive Business Growth

There's no debate about the fact that an IT service desk, when properly run, leads to both short-term and long-term business growth....

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This