According to recent media reports, e-commerce company Flipkart Internet has sold a small stake to media firm Bennett, Coleman and Co. Ltd (BCCL) for cash and advertising space in the latter’s media properties.
BCCL made a private placement offer of about Rs 260 crore to buy a warrant for Class B equity shares in Flipkart, according to documents filed with the Registrar of Companies and Tofler, a company research platform.
BCCL invested Rs 26 crore in Flipkart in December; the remaining amount will be paid when it converts the warrant into equity shares of Flipkart, said reports.
The Flipkart deal further burnishes BCCL’s already strong connections with the booming start-up business, said reports.
It was also reported earlier that Flipkart was seeking to raise $500 million-$1 billion in fresh capital.
Since February 2016, as many as 5 mutual fund investors of Flipkart have marked down its valuation by up to 60%. These markdowns have hurt its valuation demands in the ongoing funding talks, but Flipkart’s budding recovery is expected to improve its bargaining power during the talks, reports further said.