Flipkart secures Rs 300 crore loan from IDFC bank
Indian e-commerce giant Flipkart has secured a Rs 300 crore loan from IDFC Bank, according to latest documents filed with the Registrar of Companies (RoC). Flipkart did not mention a specific reason for the credit line in documents filed with the RoC.
“This is a regular credit line taken for operations in our normal course of business,” a Flipkart spokesperson told the Times of India.
Flipkart has struggled to raise equity capital this year amidst competition from Seattle-based Amazon, who recently invested Rs 2010 crore in Amazon India in attempts to seize the Indian market. Amazon’s aggression pursuit of the Indian market share, with continuing investment into areas such as groceries and video, poses a clear threat to Flipkart. The stiff competition from the American company has led to talks between Flipkart and a set of investors including the likes of Chinese e-commerce giant Alibaba and global retail giant Walmart to raise fresh money, but differences over valuation has acted as a roadblock.
Recently, Sachin Bansal of Flipkart has urged the government to create a level playing field and protect the homegrown start ups from their foreign rivals.
Flipkart has previously taken a loan of Rs 450 crore from another private sector lender, HDFC Bank. This kind of credit line is typically secured for fulfilling working capital needs.
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