Flipkart has raised $550 million from some of its existing investors, in a deal that now values the company at about $15 billion, The Wall Street Journal reported on Tuesday, citing an unnamed source. The paper reported that the latest round of funding, according to the source, was led by US-based Tiger Global Management. The funding was received last month, the person added.
In December, the online e-commerce player had got a cash infusion of $700 million, raising a total of nearly $2 billion in 2014. Morgan Stanley Investment Management, DST Global, run by Russian billionaire Yuri Milner, Singapore sovereign-wealth fund GIC, Scotland-based independent investment firm Baillie Gifford and Hong Kong’s Steadview Capital are among some of Flipkart’s existing investors.
It is understood that Flipkart is preparing for an IPO, which will provide an exit option for a clutch of private equity investors.
Recently there were reports Flipkart may raise debt for the first time by selling rupee bonds for up to R3,000 crore.
Flipkart’s main competitors are SoftBank-backed Snapdeal and US-based Amazon, who all are seeking to dominate the domestic online retail market that is projected to be worth $50 billion by 2020, according to UBS.
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