Flipkart raises $200 million Largest ever funding in Indian e-Commerce
Flipkart has raised $200 million in the fifth rounding of funding for the Bangalore-based company. The infusion comes primarily from existing investors such as Naspers, Accel and Tiger Global, and reaffirms their belief about Flipkart’s ability to survive in the hyper-competitive world of Indian e-Commerce.
Currently pegged at $1 Billion, e-Commerce in India is slated to become a $76 Billion industry by 2021.This enormous growth potential has seen a lot of companies invest huge sums in order to catch-up to the current leader in the market, Flipkart.
So far this year, the sector has seen 22 major deals cumulatively valued at Rs 950 crore, according to the research firm Venture Intelligence. SnapDeal, another large online retailer, recently obtained funding worth Rs 300 crore from eBay.
All these deals are utterly dwarfed by Flipkart’s massive Rs 1200 crore infusion.
Founded by IIT-Delhi alumni Sachin Bansal and Binny Bansal (unrelated; the last names are coincidental) in 2007, this deal values Flipkart at $1.5 Billion.
These investments come as a relief for Flipkart, which has had a hectic year of cutting costs and streamlining processes. Just last year the company was losing over 50 crore a month.
The company plans to use the funding for investments in technology, improvements to in-house logistics and supply chain and on automation.
For more on the funding: [Link]
For the Flipkart Story: [LInk]