Helion Venture and IDG Sell Part Stakes in Flipkart; Valuing the Company at $12.5B

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Helion Venture partners and IDG Venture India have sold their stakes in Flipkart, valuing the online retailer at $12.5 billion. Helion Venture sold its entire stake of 0.2%, estimated to be worth Rs 156 crore. The investment firm got a stake in Flipkart by virtue of its investment in online electronics retailer LetsBuy that was acquired by the firm in 2012.

IDG which entered Flipkart through fashion portal Myntra that was acquired in 2014, has also trimmed a portion of its holding of 1% by selling stake worth nearly Rs 940 crore last month. IDG still holds about 0.9% stake in Flipkart.

Additionally, in a related news, Flipkart’s investor Tiger Global has sold off its 3.41% stake in JustDial for Rs 300Cr, getting a 20X return.

Flipkart was valued at $11 billion in December when it raised $700 million led by Steadview Capital. It is still in talks to raise further funding in the coming months and seeking a yet another higher valuation. The company is aiming to sell goods worth $8 billion in 2014-15 and competes against firms like Snapdeal and Amazon.

In January this year, there were rumours of Flipkart planning to go public in the coming 18 months, which are still doing rounds. 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).