Online multi-vertical e-Commerce portal Flipkart has raised additional US$ 160 Million from a new set of investors. This round of funding will augment the US$ 200 Million; the web-company had secured from existing investors Naspers, Tige...
Online multi-vertical e-Commerce portal Flipkart has raised additional US$ 160 Million from a new set of investors. This round of funding will augment the US$ 200 Million; the web-company had secured from existing investors Naspers, Tiger Global, Accel Partners and ICONIQ Capital in July.
The new round of funding was participated by Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital. Interestingly, Tiger Global, who had already invested, has participated again, simply proving its faith in the platform’s success. Hence, in all, Flipkart has managed to raise a total of US$ 360 Million. Easily surpassing the US$ 200 Million raised by inMobi, this investment is by far the single largest amount ever raised till date by any Indian Internet Business.
Though the investment may appear to be a significant shot in the arm, sources close to the funding indicated that the last fund raise had a clause, already indicating an additional investment of $100 million to $150 million. With this round, Flipkart has had a total funding to the tune of US$ 541 Milllion starting from mere US$ 1 Million in 2009, followed, two rounds of US$ 10 Million and US$ 20 Million in 2010 and 2011, which later bumped up exponentially to US$ 150 Million.
Flipkart is one of the fastest growing and innovative Indian e-Commerce companies. Despite intense competition, the web-company has confidently added varied verticals on regular intervals. Though its CEO, Sachin Bansal considers ‘Fashion’ to be the prominent driver of the platform, Flipkart currently offer products across than 17 categories. As far as online shopper engagement is concerned, it claims to have 10 Million registered users and 1 Million Unique Daily Visitors at present.
Investment in Flipkart comes at a very critical stage when foreign players like Amazon are expanding their scope aggressively. Under the circumstances, companies like Flipkart will need a lot of funds to counteract the marketing tactics which predominantly revolve around cutting prices via coupons and flash sales. Do you think fund infusion will help Indian e-Commerce companies retain customers or even sustain operations?
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