Accel Sells Part Stake in Flipkart for $100M Valuing Firm at $15B


Qatar Investment Authority is one of the recent investors in the company

Update: Subrata Mitra, Partner, Accel Partners, told Reuters that globally, the VC firm has sold a small fraction of its holdings in some of portfolio companies, as secondary transactions, however no such transaction with QIA is in process.

Accel Partners, one of the earliest investors in eCommerce firm Flipkart, has sold a part of its holding in the company to Qatar Investment Authority, the sovereign wealth fund of the Arab nation, for $100 million. According to a report by ET, the deal valued the firm at $15 billion.

Earlier this year in July, Flipkart had raised $700 million from Tiger Global and Steadview at the same valuation. Qatar Investment Authority is one of the recent investors in the company, who had participated in its previous $700 million funding round in December 2014, closed at a valuation of $11 billion.

In March 2015, Flipkart saw its other stake holders Helion Venture Partners and IDG Ventures, selling off their stakes at a valuation of $12.5 billion, the two had gotten the shares in the firm through its acquisition of Myntra and LetsBuy respectively.

Also, as per a report in January 2015 Flipkart is expected to go for an IPO mid next year. With the discussions happening around the validity of the valuations of tech companies lately, not just in India but internationally as well, it might make sense for the skeptical investors to get a return on their investments, or a part of it, before the company goes public.