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April 12, 2017

VC investors breathe sigh of relief post Flipkart's latest billion dollar investment

Source: Flipkart.com
That Flipkart was able to attract such a large investment and that too at a valuation that's double of what one of its existing investors had marked it down to just a few months ago, has come as a big relief to Early Stage investors. ET-NOW Startup Central has a discussion featuring Rehan Yar Khan of Orios Venture Partners, K.Ganesh of GrowthStory and Arun Natarajan of Venture Intelligence on the impact. 


As part of the show, Arun indicates the fact that investors in the latest round were strategic ones with deep pockets, bodes well for Flipkart. The repeated mark downs made some of Flipkart's previous investors - especially the mutual fund arms of Fidelity, Morgan Stanley and others - have been a source of distraction for Flipkart even as it battles Amazon.com in the marketplace.  (Such investors have to put a value on their investments - even in privately held companies - each quarter). 

According to Venture Intelligence data, while the $700 million round raised by Flipkart in end 2014 spelled the beginning of  a "bull run" in early stage investments (with early Flipkart investor Tiger Global as the key catalyst), the similar amount the company raised in mid 2015 (post which Tiger Global effectively withdrew from the Early Stage segment) signalled the end of the party.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.