An Indian eCommerce company known as Flipkart raised only $3.6 billion in funding for what was considered to be a $37.6 billion valuation. Most of the funding came from Walmart and SoftBank coming in as the second-largest funder.
The company Flipkart is fighting against Amazon and Reliance Industries for dominance over the Indian online shopping market. Flipkart is now considering going public as the company believes it is best suited for meeting the needs of India’s middle-class citizens. Flipkart also owns PhonePe which is one of the country’s leading payment apps competing against Paytm and Google Pay.
The battle for dominance between Amazon, Reliance Industries, and Flipkart is going to become more complicated as regulators out of New Delhi are continuing to crack down on big tech which will likely force the companies to modify their marketing strategies. Amazon and Reliance have plenty of money to combat the growing Flipkart as Reliance Retail raised more than $6 billion last year nearly doubling Flipkart’s $3.6 billion. With this in mind, Flipkart is expected by analysts to be planning an IPO.
Source: Financial Times