India's largest online marketplace Flipkart secured a credit line of over Rs 450 Crore from private sector lender HDFC Bank.
The agreement was inked on February 23 through Flipkart India, one of the two key entities that control the e-tailer's Indian operations. Flipkart has provided fixed deposits as security to the bank, the RoC documents show.
The reasons for securing the credit line from HDFC Bank were not specified in the document. According to bankers, small and large companies borrow credit from banks for short-term operational needs, especially when raising fresh capital may take more time.
Keeping the risk in mind in case of a default, banks ask for a security when providing credit. Prior to this, Flipkart India and Flipkart Internet together had pledged assets worth Rs 1,400 crore to two commercial banks - Deutsche Bank and Kotak Mahindra Bank.
Flipkart is locked in a fierce three-way battle with global major Amazon's local arm and SoftBank-backed Snapdeal. The eight-year-old e-commerce major is learnt to be on the deal street to scoop up fresh funds to the tune of around $1 billion. While Amazon has been aggressively pushing investments in India with investments of around Rs 6,700 crore so far, Gurgaon-based Snapdeal recently closed a $200-million financing round, majority of which is in the form of a secondary transaction, at a valuation of $6.5 billion.
The agreement was inked on February 23 through Flipkart India, one of the two key entities that control the e-tailer's Indian operations. Flipkart has provided fixed deposits as security to the bank, the RoC documents show.
The reasons for securing the credit line from HDFC Bank were not specified in the document. According to bankers, small and large companies borrow credit from banks for short-term operational needs, especially when raising fresh capital may take more time.
Keeping the risk in mind in case of a default, banks ask for a security when providing credit. Prior to this, Flipkart India and Flipkart Internet together had pledged assets worth Rs 1,400 crore to two commercial banks - Deutsche Bank and Kotak Mahindra Bank.
Flipkart is locked in a fierce three-way battle with global major Amazon's local arm and SoftBank-backed Snapdeal. The eight-year-old e-commerce major is learnt to be on the deal street to scoop up fresh funds to the tune of around $1 billion. While Amazon has been aggressively pushing investments in India with investments of around Rs 6,700 crore so far, Gurgaon-based Snapdeal recently closed a $200-million financing round, majority of which is in the form of a secondary transaction, at a valuation of $6.5 billion.
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