In a bid to boost put up a fight with rival players in the sector, Indian e-commerce giant Flipkart has raised funds to the value of $1 billion and hopes to raise another $1 billion in the coming months.
The funding was secured on Friday at the valuation of about $10 billion, which is way less compared to the Flipkart’s valuation of 15.5 dollars in 2015, the Bloomberg reported citing people familiar with the matter.
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Microsoft Corp., EBay Inc. and Tencent Holdings Ltd., were the main backers in this round of funding, according to the report. Flipkart, however, has said it does not comment on “market speculations”.
The drop in Flipkart’s valuation can be attributed to the intense competition it is facing against US e-retail giant Amazon which has pumped in $5 billion dollars in the next few years.
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Flipkart’s sky-high valuations was marked down several times last year. In November 2016, Morgan Stanley marked down Flipkart’s valuation – for the fourth time in a year – to $5.6 billion. Last year, Flipkart was devalued by Morgan Stanley at about $5.5 billion compared to the $15.2 billion it was valued at in May 2015.