Flipkart picks up Rs 450 crore as credit from HDFC Bank

Flipkart, India’s largest online retailer, has secured a credit line of over Rs 450 crore from private sector bank HDFC. The agreement was signed recently through Flipkart India, which is one of the two key entities that control the e-tailer’s India operations. This information was revealed in the latest documents filed with Registrar of Companies (RoC).

The real reason behind this credit line is not known but bankers say it’s normal as many small and large companies pick up credit to meet day-to-day cash demands in order to maintain ‘seamless business operations’. Banks ask for a security when they give out credit. Earlier, Flipkart India and Flipkart Internet had together pledged assets worth Rs 1,400 crores to two commercial banks, Deutsche Bank and Kotak Mahindra Bank.

Flipkart’s picking up credit comes at a time when one of its investors, Morgan Stanley, recently marked down its share in the company by 27 per cent, reducing the online retailer’s valuation. Also, in the recent past the company has gone through internal changes, with Sachin Bansal becoming executive chairman while Flipkart co-founder Binny Bansal becoming the CEO. Mukesh Bansal, who was head of commerce business, resigned soon after all the changes.