Flipkart is in no mood to generate fresh funding

Experts feel that Bansal's recent statement suggests that the company has failed to raise funds at the desired valuation.

In the recent Indian startup scenario, where every new venture is trying to fetch as much funding as it could, one of India’s e-commerce major, Flipkart, has gone the other way round. The company, in its recent announcement, has stated that it is not looking to raise any fresh round of funding as of now. In his recent interaction with one of the renowned Indian dailies, Sachin Bansal, Co-Founder, Flipkart revealed that the company has enough funding to last for a longer period of time.

On the other hand, market experts feel that Bansal’s recent statement clearly suggests that the company is not able to raise funds at the desired valuation. Whereas, its competitor Amazon has been quite busy in flushing funds to back its Indian unit and recently the global e-commerce giant has infused US $3 billion to further support Amazon India.

Bansal, who was speaking to the media after an interaction with Karnataka Industries Minister RV Deshpande, acknowledged that some of the internet companies are going through a down cycle, but he said the down cycles won't last for long, just as the positive cycles 'don't last forever'.

Bansal also played down the shrinks in Flipkart's share value by some mutual funds in recent months. He stated that alongside Flipkart, many companies in the world went through markdowns. Uber too was marked down by mutual funds, but it raised money at a higher valuation than in previous rounds. Company is not thinking about the markdowns. It is more focus on execution and customers.

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