Flipkart in talks with investors to raise $1.4 billion

Flipkart is in talks with US- based Sands Capital Management to lead the round of funding with around $700 million. Existing investors of the company are expected to infuse the same amount for this round.
Flipkart

Domestic online retailer, Flipkart is planning to raise another $1.4 billion (9,200) funds to maintain its leadership in the online retail landscape. The company is in early talks with some investors for the same.
It is speculated that Flipkart is in talks with US- based Sands Capital Management to lead the round of funding with around $700 million. Even the existing investors of the company are expected to infuse the same amount for this round.
If things went as per mentioned above, it will end up crowing Flipkart ‘the’ most valuable online startup till date with a total asset of around $18 billion. Over the past two years, Flipkart has managed to raise $2.6 billion.
Tiger Global Management holds largest share in Flipkart, followed by other investors such as DST Global, Accel Partners, GIC Singapore and Abu Dhabi Investment Authority.
Despite having a huge customer base, burn rate for such eCommerce majors has always been a major concern. For Flipkart, it is very important to maintain the leadership position as it will help in raising more money with higher valuations.
As per Goldman and Sachs, India's online retailing market will expand to $36 billion in 2016-17 from $11 billion in 2014-15. The industry has and will witness increasing competitive intensity as these eCommerce companies, with endless money flow from their long-term investors, have betted big on heavy discounting to lure customers.

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