Flipkart has become the third most funded private company globally. The homegrown e-commerce company has till now raised almost $7 billion in capital, higher than that raised by global behemoths like online house rental aggregator Airbnb ($3.3 billion) and mobile phone maker Xiaomi ($1.4 billion).
In April, Didi Chuxing raised $5 billion and increased its total fund raise to $15 billion, overtaking Uber that has raised $12.9 billion. In the top 10, four are ride-hailing platforms, the other two being Silicon Valley-based Lyft and India’s Ola. Flipkart is the only e-commerce company in the top 10. The Flipkart funding reaffirms the faith of global players like SoftBank, Tiger Global, eBay, and Microsoft in Indian companies.
Since Flipkart has been the flag-bearer for the local ecosystem, this reinforces the positive belief around the long-term India opportunity, says Nitin Sharma, principal and founding member at early-stage VC fund Lightbox.
However, K Vaitheeswaran, Co-founder of India’s first e-commerce company Fabmart says despite the down-rounds across the startup ecosystem, the madness continues. This will run for two-three years. SoftBank has given the money to Flipkart not for being prudent, but for splurging to take out Amazon, he added. He feels when it comes to valuation, Flipkart stands at the ninth position with about $15 billion. Uber is the most valued company at $68 billion, followed by Didi Chuxing at $50 billion, and Xiaomi at $46 billion.