India's home grown e-commerce giant Flipkart has secured a credit line of over Rs 450 crore from private sector lender HDFC Bank, according to latest documents filed with the Registrar of Companies.
The agreement was signed on February 23 through Flipkart India, one of the two key entities that controls the company's Indian operations. Flipkart has provided fixed deposits as security to the bank, the RoC documents show.
In India, banks offer cash credit accounts to businesses to finance their "working capital" requirements (requirements to buy raw materials or "current assets", as opposed to machinery or buildings, which would be called "fixed assets").
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's move to tap into credit comes at a time when one of its investors - Morgan Stanley - recently marked down its share in the company by 27%, reducing the online retailer's valuation to little over USD 11 billion from USD 15.2 billion.
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