Online e-commerce marketplace, Flipkart is looking to raise around $1.7 billion in funding in the coming months. The raised funding is expected to be used to consolidate its position in the marketplace by acquiring new ventures, enhancing in-house technology development and funding deep discounts for consumers. With this latest funding, Flipkart will be valued at around $15 billion.
As per an ET report, the new funding round will be led by Flipkart’s existing investor, Tiger Global Management. Tiger Global could invest up to $700 million in several tranches. A handshake agreement has been reached between Flipkart and Lee Fixel, a partner at Tiger Global Management.
Other existing investors will also participate on a pro-rata basis, with new investors expected to come in over the course of the year, said by a source familiar with the deal.
In December 2014, Indian e-commerce website Flipkart had closed USD 150 million from Qatar Investment Authority (QIA) which valued the company at around USD 11 billion. Also, the company had received USD 210 million in Series F round in May last year. In July, the company had also raised USD 1 billion in a fresh round at a valuation of over USD 5 billion by the existing investors Tiger Global, DST and Accel Partners and from several new investors.
In January this year, Flipkart had announced that it is getting ready to go public in the coming 18 months. The founders of this Singapore registered portal are in talks with investment banking firms like Morgan Stanley, Goldman Sachs, Citigroup, Deutsche Bank and their likes to help them raise a minimum of $ 5 billion through an Initial Public Offering (IPO) listing in New York Stock Exchange (NYSE).