India’s largest e-retailer, Flipkart has received an initial investment of $180 million from Hong Kong based investment firm Steadview Capital. This deal when matured completely will lead to bringing in of funding worth $700 million. This will raise the value of Flipkart to $11 billion, bringing it in the league of some of the biggest consumer companies in India.
The rise of Flipkart can be understood from the fact that the company is now worth nearly half of India’s fourth largest IT firm, Wipro. Flipkart has been receiving generous investments in the recent past. In May, the company received $120 million from Russian billionaire Yuri Milner’s DST Global and $1 billion from South African media group Naspers.
All the existing investors including DST Global, Naspers and Tiger Global Management have expressed their interest in investing in Flipkart further once the current round of investments is over. An intense completion seems to be going on between the two largest e-retailers of India, Flipkart and Snapdeal.
While Flipkart has been able to raise up to $1.2 billion so far, its arch rival Snapdeal has received $627 million from Japan’s Soft Bank in October.