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Post Helion, IDG Ventures stake sale, Flipkart valuation booms to $12.5 bn

Helion Venture
Partners and IDG Ventures India have sold stakes in Flipkart in deals that
value the e-commerce firm at $12.5 billion.

Helion Venture
Partners and IDG Ventures India have sold stakes in Flipkart in deals that
value the e-commerce firm at $12.5 billion.

According to a Economic
Times
report, citing sources, Helion, which got a stake in Flipkart by virtue
of its investment in electronics e-tailer LetsBuy that was acquired by Flipkart
in 2012, has sold its entire stake of 0.2%, estimated to be worth Rs 156 crore.

IDG Ventures,
which entered Flipkart through fashion portal Myntra that was bought in 2014,
has shed 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.

Recently, we reported
that Flipkart is in advanced talks to raise $600-800
million
in fresh capital, led by its largest investor Tiger Global. Flipkart’s
pre-money valuation may increase to $14-15 billion in the latest round.

Founded by
former Amazon employees Sachin Bansal and Binny Bansal, Flipkart saw its
valuation jump from $2.6 billion in May 2014 to about $11 billion by December
when it raised $700 million led by Steadview Capital. It is now aiming to raise
$1.7 billion through this year, with Tiger Global expected to lead the
investment.

The company is
aiming to sell goods worth $8 billion in 2014-15 and competes against Amazon
and Snapdeal.

“It’s an
opportune time for investors, especially those who have been invested in
ecommerce companies for more than 4-5 years, to start offloading. That is the
trigger for these secondary sales,” Raja Lahiri, a partner at consultancy
Grant Thornton was quoted in the Economic Times as saying. “I see this
trend continuing for the larger companies. Moreover, listings are not easy and
that also triggers secondary exits.”

In December
2014, Flipkart announced that it had sought to register as a public company
with regulatory authorities in Singapore, as the number of shareholders in the
company had exceeded 50. The company also clarified that such a move was not an
indication of an upcoming public market debut.

At present, the
largest investors in Flipkart include Tiger Global, which holds majority stake
in the company, and Accel Partners — its first venture investor, which owns
about 20%. Other investors in the company include South Africa’s Naspers,
Singapore’s GIC and the Qatar Investment Authority.

 

 

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