Entrepreneurs and investors bedeviled by growth pangs and lack of sufficient capital in recent months have good reason to be circumspect.
Its plans to turn profitable in specific categories comes at a time when it faces Amazon’s $5-bn war chest in India, as well as looming threat of Alibaba’s entry.
"We have focused a lot, in the past 12-15 months, on improving costs and margins, reducing burn rate, and improving working capital," Binny Bansal said.
The $1.4-bn deal is led by Tencent with an investment of $700 mn while eBay will contribute $500 mn & also receive Flipkart stock worth $200 mn in lieu of its Indian operations.
The cumulative FDI that companies like Google, Yahoo, Facebook and LinkedIn have put into India is less than $500 million.
According to the terms proposed by the Japanese media and telecom conglomerate, Snapdeal shareholders will get one share of Flipkart for every ten they own.
The new fundraising could more than double BigBasket's valuation to nearly $1 billion, according to one of the investors involved in the discussions.
RNT Capital is expected to lead the round with an investment of $60 mn with the rest coming from New York-based hedge fund Falcon Edge Capital.
The new fund, which is targeting a final close by the end of the year, will take the total assets under management of the Bengaluru-based investment firm to more than $1billion, two people familiar with the matter said.
I think one of the things we do better than anybody else is wrapping brands around content, says Shane Smith, CEO, Vice Media.
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