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Helion Venture Partners & IDG Ventures sell stakes in Flipkart in deals valued at $12.5 billion

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Ending all valuation speculations, IDG Ventures and Helion have today announced a stake sale in India’s largest e-commerce brand, thus valuing the company at over $12.5 Billion.

Helion Venture had around 0.2% stake in the e-commerce giant, estimated to be worth INR 156 Crore, which were gained by by virtue of its investment in online electronics retailer LetsBuy. LetsBuy was then acquired by Flipkart in 2012.

On the other hand, IDG Ventures acquired a stake in Flipkart through fashion portal Myntra, that was bought last year by the e-commerce giant. Even after selling its 1%stake in Flipkart (worth Rs. 940 crore), IDG Ventures has 0.9% stake. The stake buyers are still wrapped under the sheets.

Earlier, there were reports that Flipkart was seeking a valuation of $15 Bn as it planning to raise a fresh round of funding which will value it at $15 billion. This new round of investments would be led by Tiger Global Management and Qatar Investment Authority, as per details coming in. In case this deal goes through, then Flipkart will become the only Indian eCommerce firm to have raised more than $2.5 billion since May last year. As of now, there are still 15 investors who have backed this mega-portal.

Last year in December, when Flipkart raised $700 million, it was valued at $11.5 billion which is now $12.5 billion. Founded by former Amazon Inc. executives Sachin Bansal and Binny Bansal in 2007, Flipkart is all set to gain a greater share of India’s retail e-commerce space that is estimated to grow 70% by the end of 2015.

Senior Writer

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