Flipkart valued at roughly Rs.9,900 crore, says MIH India
MIH India, one of Flipkart’s investors, said that it bought an additional 8.6% stake in the firm in July for Rs.851.7 crore
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Bangalore: India’s largest e-commerce company Flipkart.com is valued at roughly Rs.9,900 crore, MIH India, one of Flipkart’s investors, disclosed on Tuesday after almost doubling its stake in July.
MIH India, a part of South African media company Naspers group, said in a report on its website that it bought an additional 8.6% stake in Flipkart Pvt. Ltd in July for Rs.851.7 crore. MIH said it now owns 16.7% of Flipkart.
Since 2009, investors have poured some $550 million into Flipkart, betting on the company’s winner- takes-all strategy, which involves pursuing revenue growth and market share at any cost.
Flipkart’s other investors include Accel Partners and Iconiq Capital Llc, which along with Tiger Global had invested $200 million in the company in July. In October, Flipkart said it raised $160 million mostly from a new set of investors comprising Dragoneer Investment Group Llc, Morgan Stanley Investment Management, Sofina SA and Vulcan Capital Management Inc.
Flipkart has raised $360 million this year alone, even as e-commerce investors have pulled back from putting their money in most new and existing sites, after losing earlier bets placed on the sector.
Though site closures have increased over the past two years in India because of a lack of funding, Flipkart is likely to face its toughest competition over the next few years with the entry of the world’s largest online retailer Amazon.com, which launched its India marketplace in June.
Amazon.com, the company Flipkart is modelled on, started selling books and electronics and then quickly moved to selling baby products, watches, toys and others.
The company will continue adding products to its portfolio and has set a 10-year plan for India, an Amazon executive familiar with the situation has said.
MIH India, which owns the online travel booking portal Ibibo, has been increasing its investments in India’s e-commerce sector.
In June, the company bought an 80% stake in redBus, India’s largest bus ticket booking site.
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