Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
Associate PartnerAssociate Partner
  
LIVE TV DownloadNews18 App
News18 English
News18 » India
1-min read

What Flipkart's funds mean for its rivals

With an estimated $80 million unspent from its August 2012 funding of $150 million, Flipkart has $280 million before it needs more cash.

Rohin Dharmakumar | Forbes India

Updated:July 30, 2013, 12:45 PM IST
facebookTwitter Pocket whatsapp
What Flipkart's funds mean for its rivals
With an estimated $80 million unspent from its August 2012 funding of $150 million, Flipkart has $280 million before it needs more cash.

flipkart.com , india's largest ecommerce retailer, announced on July 10 that it has raised $200 million in its fifth round of venture funding from existing investors Naspers, Accel and Tiger Global. It is by far the largest funding raised by any Indian ecommerce company, adding up to $380 million since Flipkart's inception in 2007. The Times of India reported it is in talks for another $100 million.

With an estimated $80 million unspent from its August 2012 funding of $150 million, Flipkart has $280 million before it needs more cash. This gives it a 'cash runway' advantage compared to Jabong, Snapdeal or Myntra. Using recent estimates, the company has three to four years of runway left. Flipkart's objective will be to thwart Amazon and remain the dominant brand. This will spell bad news for less-capitalised rivals who want to dominate their own spaces-Snapdeal (marketplaces), Myntra and Jabong (apparel). Flipkart is likely to build infrastructure services that can be hired out to competitors.

Co-founders Sachin and Binny Bansal have diluted their stakes to reportedly single digits and the company is being driven by investors. It will be interesting to see how Tiger Global and Naspers, the two largest, plan to exit: An IPO or a sale to an international giant?

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results