21st January, 2019
Standup India Related News

Flipkart becomes the third most funded private firm globally

With the Japanese conglomerate Softbank’s Vision Fund investing $ 2.4 billion, Flipkart has become the world’s third most funded private company, and also the most funded e-commerce startup. Flipkart, which is Amazon’s main domestic rival in the fray for dominance of India’s online retail market, has till now raised almost $ 7 billion in capital, higher than the funding raised by global giants like US-based online house rental aggregator Airbnb ($ 3.3 billion) and China-based smartphone maker Xiaomi ($ 1.4 billion). The top two spots are taken by ride-hailing companies - China-based Didi Chuxing with a total of $ 15 billion funding raised and US-based Uber which has raised $ 12.9 billion. Among the top 10, four represent ride-hailing platforms; the other two are Silicon Valley-based Lyft ($ 2.6 billion) and India-based Ola ($ 1.9 billion). Interestingly, Flipkart is the only e-commerce playing occupying the top 10 spot.

Investor faith

While funding may not necessarily define a firm’s stability and health, the recent $ 2.4 billion funding reinforces the faith of global investors like Tiger Global, Microsoft, Softbank, Tencent and eBay in Indian companies.

Flipkart sees a funding blitzkrieg in 10 years

From 2007 to 2017, 20 investors have invested a total of $ 7.12 billion in 16 funding rounds. Some of the major investments include:

  • Accel Partners provided Flipkart the first institutional round of funding ($ 1 million) in 2009 along with $ 10 million funding from Tiger Global taking the valuation of the then fledgling startup to $ 50 million.
  • In 2010-11, Flipkart raised $ 20 million from Tiger Global in Series C funding round.
  • In August 2012, Flipkart joined the unicorn club after raising $ 150 million in Series D funding round led by South African tech giant Naspers.
  • In 2014, after acquiring Myntra, Flipkart raised $ 210 million from DST Global taking the valuation of the company to $ 2.6 billion.
  • In 2014, Flipkart received a whopping $ 1 billion from GIC Singapore and existing investors Naspers, DST Global and Tiger Global. In December 2014, Flipkart raised $ 700 million from hedge funds backed by 10 investors taking the company valuation to $ 11 billion.
  • In July 2015, Flipkart raised another $ 700 million from all its existing investors which scaled the company’s valuation to $ 15.5 billion.
  • In 2016, Flipkart was a rough patch with the firm receiving several valuation markdowns which plummeted to a mere $ 5.6 billion.
  • In 2017, Flipkart regained lost ground. Flipkart raised $ 1.4 billion in private equity from Microsoft and Tencent in April 2017.

Biggest exit in Indian ecosystem

With Softbank`s $ 2.5 billion investment in Flipkart in August 2017, Tiger Global is now projected to register the biggest exit for an investor in the Indian startup ecosystem, estimated at over $ 800 million. After the deal, Tiger Global will be left with at least 18% stake in Flipkart, which will be worth over $ 2 billion, according to post money valuation of the company.

Valuation rank of Flipkart

Globally, Flipkart currently stands at the ninth position with about $ 15 billion in valuation. The top three positions are taken by Uber ($ 68 billion), Didi Chuxing ($ 50 billion) and Xiaomi ($ 46 billion). The valuation of a company is a function of its capital efficiency, among other attributes. [irp]