Flipkart raises Rs 6,000 crore in fresh funds
Flipkart will announce possibly as early as next week that it has raised over $1 billion (Rs 6,000 crore), the biggest ever fund-raising by an Indian e-commerce company, two people aware of the development said.
Half of the amount will come from existing investors Tiger Global, Russian billionaire Yuri Milner’s DST and Accel Partners while the rest will come from several new investors.
Among those who are said to be interested in investing in India’s largest online retailer are Singapore’s sovereign wealth fund GIC and US based investment firm T Rowe Price. With this latest deal, India’s biggest online retailer will have raised over $1.7 billion, valuing it at over $5 billion. (BCCL)
A billion dollars in fresh funding is not just a first for the Indian startup ecosystem, but is also among the biggest fund raises globally this year. In June this year, Silicon Valley-based Uber raised $1.2 billion at a valuation of around $17 billion. (BCCL)
Flipkart is rapidly scaling up its operations as it competes with Amazon.in and homegrown competitor Snapdeal.
Flipkart, which crossed $1 billion in sales in March and even acquired online fashion retailer Myntra in May, has also launched customer service initiatives like same-day delivery in multiple cities and at-home trials for certain fashion categories.
As orders cross the 5-million-amonth mark, Flipkart will have to continue investing in its backend operations in a cutthroat market. The company, along with other players like Amazon and Snapdeal, is also continuing to discount heavily.
Since 2013, top global investors have competed to pump money into India’s online retail industry, which advisory Technopak estimates will expand from the current $2.3 billion to $32 billion (Rs 13,700 crore to Rs 1.9 lakh crore) in six years. Over the past four quarters, ecommerce companies cornered 72% of the $1.3 billion (Rs 7,700 crore) that went into Indian technology companies across 266 deals, according to research firm CB Insights.
Courtesy :: timesofindia.indiatimes.com