Flipkart is an e-commerce startup which was started in the year 2007 by two IIT Delhi graduates. Initially, these two have worked with Amazon, later they quit their jobs with a dream of establishing their own business.
By the time when they commence their business, Flipkart has just started typically as an online book store and there after it had turned into India’s largest Internet startup. It has the widest range of products to deal with in the largest number when a customer places the order.
How was it able to sustain in such competitive e-commerce environment?
When it enters into the Indian online retail market, there are so many obstacles that affect its business model mainly in terms of competition. Despite of so many ups and downs, it created its own path, landmarks in the process and also sets a stage for so many other startups as well.
But at the same time, investors were acted as a backbone for its funding requirements at some crucial stages in its fight against Amazon, eBay and other competitors.
Who are all the major Investors of Flipkart?
In order to achieve their business progress, the company has been raised funds from various Private equity, Venture capital firms and Angel investors who were majorly acted as crucial source of capital.
Some of the VC’S and PE firms include Accel Partners, Draganeer Investment Group, DST Global, ICONIQ Capital, Naspers, Morgan and Stanley Investment Bank, Fidelity Investments, Vanguard Group and Tiger Global Management etc.
As per the report provided by Bloomberg, Flipkart had raised $1billion funding and looking to raise around $1 billion more in the due course of 2017. The company has recently raised funds on March 20th which typically sets a valuation of $10 billion.
Despite company’s recent problems and other capital requirements, this news appears to give a boost to the management to overcome the competition.
Valuation and Story of Flipkart’s funding from various VC’S & PE firms:
- In the year 2007, Company started business operations with its Initial capital of $6,000
- In the year 2008, Ashish Gupta and Helion venture partners helps Flipkart to get funded
- In the year 2009, a famous Venture capital firm Accel India provided the first round of seed funding with $1 million and in the same year company also received $10 million from Tiger Global Management
- Valuation by the end of the year 2009 – Approximately $50 million
- In the year 2010-11, again the company raised $20 million from Tiger Global Management and called up various private equity firms for its further funding. General Atlantic was one among them to raise required capital
- Valuation by the end of the year 2011 – $1 billion
- By the time when Flipkart entering into the year 2012, it became as a Unicorn Startup (Typically known a company which is valued over $1 billion)
- In the year 2012, it has funded with $150 million by Naspers which is a South African tech major.
- In the year 2013, Flipkart raised $200 million from its existing set of investors and $160 million from Morgan Stanley, Dragoneer & Vulcan Capital Management
- Valuation by the end of the year 2011 – $1.6 billion
- In the year 2014, company raised some capital from existing investors like Naspers & Tiger Global, $210 million from DST and $1 billion from GIC Singapore Global. In support with these funds Flipkart acquired Myntra in same year
- Valuation by the end of Quarter 1’ year 2014 – $7 billion
- Again in the same year Flipkart had funded with $700 million from Hedge funds like Qatar Investment Authority, Greenoaks & Steadview Capital
- Valuation by the end of the year 2014 – $11 billion
- In the year 2015, raised $700 million from all the existing investors in company and stood at the highest valuation of $15.5 billion
- When it comes the year 2016, company had faced a severe markdown by few mutual fund investors like Morgan Stanley & Vanguard Inc. This markdown process keep on happening by various mutual fund investors and hence the valuation stood at $11.6 billion
Source: Bloomberg & Financial Express
- But this time, one of the mutual fund investor Valic which is an US fund markedup all Flipkart shares by 10%. This markup supported the company to value at $11.5 billion
- When it was entering into the year 2017, again there was a major cut down of Flipkart shares by Morgan Stanley Mutual Fund
- Valuation by the end of the year 2016 – $5.58 billion
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