Know what’s keeping Flipkart busy these days

If you thought we are going to talk about company’s pre-Diwali plans, then you are wrong on. Besides being busy with the pre-festive season, the e-tailer is also looking forward to expanding its horizons and making new acquisitions. If rumours are to be believed, the Benguluru-based firm might get a stake in the digital mapping company, MapmyIndia.

As per an Economic Times report, the e-tailer is in advanced talks with MapmyIndia whose venture capital investors are looking for an exit.
The deal will help Flipkart build up its customer analytics, and might also let the firm acquire a significant stake in MapmyIndia.

Rumours are also abuzz that Flipkart might spend around $60 million (Rs 400 crore) for a majority stake in Delhi-based company. Other sources, however, are estimating Rs 500 crore for the deal.

"The deal would allow all investors in MapmyIndia to get an exit. The promoters could, however, retain some stake in the firm," said an official requesting anonymity.

The deal negotiations were initiated about a month back but the exact percentage of the equity that Flipkart might pick up in MapmyIndia is yet not available.

Sources aware of the development also confirmed that the two companies are themselves negotiating this deal and have appointed no investment banker.

MapmyIndia founder and CEO Rakesh Verma denied any such plans when approached by the business daily.

"The financial investors have around 25% stake and it is correct they are looking at an exit. We are an independent company and will remain independent," he said.

In an email response to ET, Flipkart said, "We won't be able to comment on this."