Indian e-commerce player Flipkart has raised 1 billion dollars in the latest round of funding, and plans to raise another 1 billion, as reported by Bloomberg. The companies that are said to have backed the funding include Tencent Holdings Ltd., Microsoft Corp. and EBay Inc. The funding was raised at a valuation of $10 billion, which is substantially lower than the valuation of $15.5 billion they had in 2015. With this, Flipkart’s total funding is $4.2 billion now, and if the other $1 billion (which is in the pipeline) also comes in, it would go to $5.2 billion, which is higher than Amazon India’s commitment of $5 billion.
That Flipkart will get funded was never in doubt. The valuation of $10 billion is nothing to worry about, the funding environment is rather slow globally,” Satish Meena, a senior forecast analyst at Forrester Research said.
Flipkart, however refused to confirm the development, saying that it does not comment on “market speculations” as a company policy.
The news comes in the wake of changes in the senior management of both Flipkart and Amazon India. Kalyan Krishnamurthy (formerly with Tiger Global) became the CEO of Flipkart, and founders Sachin and Binny Bansal are now Group Chairman and Group CEO, respectively. Amit Agarwal, who is the country head of Amazon India, was promoted to the position of Senior Vice President.