The Indian e-commerce company Flipkart, on Monday, raised $ 1 billion in funding and is now aiming to raise the same amount in next few months, giving it a welcome boost after it’s valuation was marked down by two mutual funds earlier this year.
The company secured its latest funding at a valuation of about $10 billion. This is far below the valuation of $15.5 billion which the company touched in 2015. However, the current valuation is more than what the mutual fund managed by Morgan Stanley had slashed it to in December 2016, ie $5.54 billion.
Here is the complete history of investment the company has raked in over the years:
2007: The company was founded by Sachin Bansal and Binny Bansal who used to work with Amazon before launching it. It was initially launched as a book-selling e-commerce website.
2009: After receiving undisclosed funding from angel investors in the past, the company managed to secure its first round of institutional funding from Accel India and Tiger Global Management. The venture capital firms invested $ 1 million and $ 10 million in Flipkart, respectively.
2011: Within two years, it managed to secure double the amount, ie $20 million, in funding from Tiger Global Management. The company was valued at $1 billion at this time.
2012-13: Seeing an exponential growth, the company managed to raise funding of $150 million in 2012 by Naspers, a South African media and internet company. Following year, it raised $200 million more from existing investors and an additional $160 million from Morgan Stanley, Vulcan Capital, Sofina and Dragoneer taking the total funding amount to $360 billion.
2014: In May, the company acquired Myntra, and within the next few days announced another round of funding raised from Russian firm Digital Sky Technologies (DST). In the next two months, the company announced a massive jump by achieving a $1 billion funding from GIC Singapore and existing investors. The same year, the company’s valuation also went up to over $15 billion.
2016: After being valued at a peak of $15.5 billion in 2014, the company suffered its first setback when mutual fund linked to Morgan Stanley slashed its valuation to $ 9.39 billion in May and further bringing it down to $5.54 billion in November. Meanwhile, one of the investors, T Rowe Price, also cut the value of its holding in the company by 15 per cent.
After a series of setbacks and speculations that the Indian e-commerce industry is going through tumultuous times and also facing stiff competition from other major players like Amazon, Flipkart has now announced the new rounds of fundraising and an increase in its valuation. However, the company has said that it does not comment on market speculations.