Flipkart has reportedly raised about $38.7 Mn (INR 260 Cr) from media giant Bennett, Coleman and Co. Ltd (BCCL). According to documents filed with the Registrar of Companies, BCCL made an offer to Flipkart of about Rs 260 crore to buy a warrant for Class B equity shares in Flipkart.
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BCCL already invested Rs 26 crore in Flipkart in December and rest to be invested after the conversion of warrants to Flipkart equity shares.
Flipkart suffering from its valuation markdowns by many of its existing investors will be excited by the deal.BCCL had a similar deal with online marketplace Snapdeal in February last year.
BCCL also invests in the global company like Uber. Some time before it was also reported that Flipkart was seeking to raise $500 million-$1 billion in fresh capital.
Flipkart, India’s top e-commerce company is going through a number of flip-flops in as Flipkart Co-founder Binny Bansal stepped down from the position of company CEO. Kalyan Krishnamurthy, head of Flipkart’s Category Design Organisation, became the new CEO of Flipkart. but the next day after the appointment, three of the top-level executives reportedly resigned from the company.
To overcome its low valuation Flipkart also reported to re-evaluate its offerings of its logistics arm– Ekart and it also has suspended Ekart’s customer-to-customer (C2C) courier operations. on another side, it also ceased its hyperlocal delivery services in Bengaluru that were launched in November 2016.
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