Indian homegrown eCommerce giant, Flipkart has raised ₹400 Crore ($71 million) from South African technology investor Naspers. After this investment, Naspers holds 16.5% stake in the company. Previously in 2012, they invested in Flipkart as the lead investor from the round by seeing their potential and unique idea for the betterment of eCommerce market.
This huge investment made by Naspers will help Flipkart in competing with its rival Amazon and can also promote their products and services on the global level. The investment shows the blind faith and confidence of Naspers towards Flipkart and its future. Moreover, Naspers gave a statement that Flipkart still have a large opportunity for them in the market, the customers prefer their products and choose them over other eCommerce portals. Naspers has put Flipkart with its other investments PayU and MakeMyTrip and classified them as the upcoming potential companies.
Naspers commented that “The group invested ₹400 Crore ($71 million) for an additional interest in its associate Flipkart Limited (Flipkart) in April 2017. The additional interest was acquired from existing shareholders of Flipkart. Following the investment, the group holds a 16% interest in Flipkart on a fully diluted basis”. They also stated that “In January 2017 the group concluded the merger of its online travel businesses ibibo and redBus with Nasdaq-listed MakeMyTrip, creating India’s leading online travel business. Post merger, Naspers holds a 40% fully diluted stake in MakeMyTrip. To fund further expansion, the group invested an additional ₹850 Crore ($132 million) in MakeMyTrip after year-end,”