Flipkart raises $160 million more
Flipkart online retailer has raised another $160 million( around 990 crore) of funding,barely three months after Flipkart.com raised $200 million most of it coming from new investors..
This latest round of investments was made by Dragoneer Investment Group, Morgan Stanley Investment Management, Vulcan and Sofina Capital.
Sachin Bansal, co-founder and CEO, Flipkart.com, in a statement said the Indian e-commerce market is at a critical inflection point and this additional capital will help it expand further. The rumours were true. We raised $360 million,” Flipkart chief executive Sachin Bansal wrote on the social networking site Twitter, referring to media reports over the past week that the company was looking for another fund-raise. “We are excited to work with a group of investors who strongly believe in our business strategy and are completely aligned with our long-term goals. India’s e-commerce market is at a critical inflection point and this additional capital will allow us to further expand our leadership position,” Bansal said in a statement.
An industry analyst values the firm currently in the range of $18-22 billion. The Indian e-commerce segment is seeing at a fast clip and research estimates that around 100 million Indians have access to the Internet and 10 per cent of them transact online, buying anything from luxury goods to mobile phones.
Companies such as Snapdeal, RedBus, Fashion & You have seen investments Intel Capital, Norwest Venture Partners, RuNet Holdings and others.
Flipkart was started in 2007 by Sachin Bansal and Binny Bansal—they are not related—as an online bookseller. Since then, it has raised at least $560 million in capital and expanded its product range to electronics, footwear, accessories and apparel.
The company has stated that it intends to become the market leader in apparel, one of the highest money earning categories where it competes with Myntra.com, Jabong and others. With massive funds at its disposal, Flipkart has bought itself the firepower to do it.
Flipkart has a target of generating $1 billion in gross merchandise value, or the total value of products sold on the site, by 2015. It is not only Indian e-commerce players that are making investments in technology, people and other business areas. Last month, e-commerce giant eBay opened a new development centre in Bangalore, its third such centre with plans to hire 1,000 IT professionals by 2016.
Retailer Amazon announced its India foray in August, as consumers are buying more online due to convenience and attractive pricing, according to industry watchers.