Flipkart, Snapdeal Gear Up For Billion-Dollar Festive Dhamaka

BENGALURU: E-commerce giants, Flipkart and Snapdeal are planning to shore up capital from its investors for this festive season, reports The Economic Times.

Flipkart is said to be raising $1billion from existing investors, where as its rival Snapdeal is negotiating with Foxxconn and Chinese e-tailer Alibaba to raise its funds up to $1billion, also reports from various sources point out that Apple iPhone maker had committed $600 million to Snapdeal.

If companies like Tata, Reliance and Aditya Birla Group plans to enter in to e-commerce, the need to raise more funds will increase because of the huge competition in online marketing in the upcoming years.

"I think the time of e-tailing companies getting valued at five times their GMV is getting over, and if the growth rate slows down it will have to come down to more realistic levels of around 2 times," said a venture capital investor who has backed several ecommerce firms.

According to a source, Flipkart was hoping to see a valuation of $18 billion in further rounds of negotiations but for now closed the deal for $15 billion. While e-tailers continue to hike to the success, analysts in industry hint that the discount-led approach will have a negative impact in distant future.
Also Read:
8 Best Business Ideas to Make Money Online
Foreign Capital Inflows At 8,400 Cr In July