Mumbai Thoughts >> I love the fast life of Mumbai : Manpreet    |    I hate the long time of commuting in Mumbai ☹ : Radhika P.    |    I hate the poorly maintained heritage buildings of Mumbai ☹ : Krupa T.    |    I love sunset at beach in Mumbai : Jayant V.    |    I hate the unclean nature of Mumbai ☹ : Sarit P.    |    I love that Mumbai never sleeps : Rashair C.    |    I hate the corruption of Mumbai ☹ : Arjun M.    |    I love the cosmopolitan culture of Mumbai : Sarit P.    |    I hate the behaviour of government people in Mumbai ☹ : Milan N.    |    I love the night life of Mumbai : Satish    |    I hate the extremely high cost of living of Mumbai ☹ : Piyush R.    |    I love the safety of Mumbai : Radhika P.    |    I love the better employment opportunities of Mumbai : Raza A.    |    I love the old British colonial architecture of Mumbai : Krupa T.    |    I hate the infrastructures of Mumbai ☹ : Rashair C.    |    I love the colonial areas of Mumbai : Milesh S.    |    I love that Mumbai is a city of dreams : Yogita S.    |    I hate the dirt of Mumbai ☹ : Madhu G.    |    I hate the lack of nature in Mumbai ☹ : Brinda M.    |    I love the speed of Mumbai : Pratik C.    |    I love that Mumbai is a safe place for women : Madhu G.    |    I love the nightlife of Mumbai : Aditi R.    |    I love vada pav in Mumbai : Priyesh Y.    |    I love the social life of Mumbai : Lester M.    |    I love that Mumbai is a financial innovation capital : Jimmy P.    |    I hate the non provision for cyclists in Mumbai ☹ : Asheen A.    |    I love the sea-link in Mumbai : Abhijit    |    I love the helpfull population of Mumbai : Riddhi S.    |    I love that Mumbai knowshow to welcome festival : Aarti G.    |    I love the inclusive nature of Mumbaikars : Sunishi G.    |    I love the festival in Mumbai : Abhijit    |    I hate the dirt of Mumbai ☹ : Aditi R.    |    I love that Mumbai is a land of opportunities : Madhu G.    |    I hate the uncleanliness of Mumbai ☹ : Devanshu    |    I love the diversity of Mumbai : Manish M.    |    I hate the lack of ecofriendliness of Mumbai ☹ : Manpreet    |    I hate the sense of filth in Mumbai ☹ : Sunishi G.    |    I hate the lack of proper urban planning in Mumbai ☹ : Manpreet    |    I love the beach of Mumbai : Irsad S.    |    I hate the crowded trains of Mumbai ☹ : Raza A.    |    I love the culture opportunities of Mumbai : Dupa P.    |    I love that people from different cultures live and work together in Mumbai : Saurabh K.    |    I love the vibes of Mumbai : Devanshu    |    I hate the noise pollution of Mumbai ☹ : Radhika P.    |    I love the street food of Mumbai : Jessica N.    |    I love Marine Drive in Mumbai : Krupa T.    |    I love the Neo Gothic structures of Mumbai : Faiyar S.    |    I hate the bad civic amenities of Mumbai ☹ : Afrid W.    |    I hate the unnecessary honking on the streets of Mumbai ☹ : Krupa T.    |    I hate the roads potholes of Mumbai ☹ : Arjun M.    |    I love the traditions of Mumbai : Dhaval C.    |    I love the liveliness of Mumbai : Sanjay B.    |    I love that Mumbai is being the financial capital of India : Sanjay B.    |    I love the great restaurants of Mumbai : Radhika P.    |    I love the holy songs singing in the train in Mumbai : Abhijit    |    I love that Mumbai always stand united : Aarti G.    |    I hate the lack of gardens in Mumbai ☹ : Madhu G.    |    I hate the inadequate public transport infrastructures of Mumbai ☹ : Saurabh K.    |    I love the honestly of daba walas in Mumbai : Kiran M.    |    I hate the noise in Mumbai ☹ : Pradeep M.    |    I hate to see homeless people in Mumbai ☹ : Lester M.    |    I hate the poor drainage system of Mumbai ☹ : Irsad S.    |    I hate that people are not following traffic rules in Mumbai ☹ : Komal S.    |    I hate the lack of open spaces in Mumbai ☹ : Anthony D.    |    I hate the transportation system of Mumbai ☹ : Aarti G.    |    I love that there is so many things to for entertainment in Mumbai : Saurabh K.    |    I love the sea in Mumbai : Pradeep M.    |    I love that it never gets too cold in Mumbai : Kshipra L.    |    I hate the price of real-estate in Mumbai ☹ : Cherylann M.    |    I love the cultural diversity of Mumbai : Cherylann M.    |    I hate the dirty beaches of Mumbai ☹ : Priyesh Y.    |    I hate the lack of recreational areas in Mumbai ☹ : Tehsin L.    |    I hate that Mumbai is pedestrian unfriendly ☹ : Milesh S.    |    I hate the stressfull life of Mumbai ☹ : Srinibas P.    |    I love the good educational facilities of Mumbai : Stanlay B.    |    I love Mumbai coastline : Hitesh K.    |    I love the vibrant life of Mumbai : Afrid W.    |    I hate dirty politics of Mumbai ☹ : Imran S.    |    I love that Mumbai is home to so many people and cultures : Arjun M.    |    

Flipkart Seeking Investment Banking Help To Raise Fresh Funds

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  • BHC Team

India seems to an active battleground for startups both domestic and international. With the on-going battle between Ola and Uber, another high profile competition is taking place between Flipkart and Amazon. Amidst the growing cash infusion by Amazon India's parent company, Flipkart finds itself in need of fresh funds to maintain competitiveness. The problem with this is a growing downturn in investor sentiment, with companies being actively devalued. As a result, Flipkart has now turned to investment bankers, including Goldman Sachs to help find these fresh funds.

Over its last four funding rounds, Flipkart, India's most valuable Internet Company raised a cumulative $2.6 Billion with relative ease due its uncontested status as India's largest e-commerce firm. However, with Amazon India's intense cash burn in the market, Flipkart has now turned to a number of investment banks to seek funding options. For its next round, Flipkart's preferred valuation is around $15 billion, however, venture capital investors say that Flipkart will struggle to get that valuation because of Amazon's continued expansion and the belief in investor circles that Flipkart is overvalued.

Along with recently acquired companies such as Myntra and Jabong, Flipkart has a monthly cash burn rate of approximately $40 million per month, giving them just enough in their coffers to last another two years (higher estimate). As its cash piles disappear, the promoters, along with major investors Tiger Global Management are seeking an immediate influx of cash. It seems logical to state that the longer they wait, and the more depleted their cash reserves get, the lower their valuations will get i.e. if Flipkart isn't able to produce some level of profitability.

Investment banks in India lost out on a large amount of business in 2014-15, by missing out on the large fund raising exercises by Indian internet companies, and therefore will pounce at the option to raise funds for them now, albeit at a lower valuation. In the past, investors were so excited by the opportunity of a big-win in the Indian Internet space, that they invested directly, with no bankers required.

A recent report in Mint stated that the company planned on raising between $500 million to $1 Billion in fresh funds before the end of the fiscal year. While the company has been making commendable progress in improving their operating profits under the new stewardship of CEO Binny Bansal and Kalyan Krishnamurthy, some of their own investors marked down their valuation by as much as 40%.

The devaluation has come amidst widespread criticism of the use of Gross Merchandise Value (GMV) to incorrectly over-value companies. Moreover, their three-prong approach involving app-only push, high profile leadership along with their marketplace model having failed saw a mass exodus of personnel from the company. As such, these slips and faults allowed Amazon India to catch up to their Indian rivals, leaving Flipkart in more urgent need of money than most care to realize.