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Flipkart in talks to raise $600-800 mn in fresh capital

Flipkart Ltd is
in advanced talks to raise $600-800 million in fresh capital. Flipkart’s
pre-money valuation may increase to $14-15 billion in the latest round, reports
Live Mint
, citing sources.

The latest
fund-raise is likely to be led by existing investors Tiger Global Management
and Qatar Investment Authority, reports Live Mint, citing sources.

Flipkart Ltd is
in advanced talks to raise $600-800 million in fresh capital. Flipkart’s
pre-money valuation may increase to $14-15 billion in the latest round, reports
Live Mint
, citing sources.

The latest
fund-raise is likely to be led by existing investors Tiger Global Management
and Qatar Investment Authority, reports Live Mint, citing sources.

Pre-money refers
to the value of the company excluding the cash from the latest round. Flipkart
was valued at nearly $11.5 billion when it received $700 million from investors
in December.

Founded by
former Amazon Inc. executives Sachin Bansal and Binny Bansal in 2007, Flipkart is
estimated to grow 70% to $6 billion this year. Although Flipkart is now
well-capitalized despite burning massive amounts of cash on advertising,
discounts and hiring, it continues to raise capital to build itself a vast
financial cushion ahead of an expected initial public offering within the next
18 months and to stave off challenges from rivals including the Indian unit of
Amazon and Softbank Group-backed Snapdeal.

According to the
report, the online marketplace is currently among the most sought-after private
companies globally and is considered by some analysts as the next big online
business after China’s Alibaba Group, which went public last year and is valued
at more than $210 billion despite a recent slump in its stock price.

 “Currently, there’s massive interest in
Flipkart and in start-ups generally. Money is very easily available. But this
isn’t going to last long, so Flipkart wants to ensure that even if things turn
sour, they have enough in the bank to last them a long time,” a source close to
the development told Live Mint.

Rival Snapdeal
is also said to be in talks to raise its next round of funds. Last year, Snapdeal
received $627 million from Japan’s SoftBank Group. 

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