E- Commerce giant Flipkart raises $700 million in its latest offing, promises more for the long term
In another round of funding, India’s biggest online retailer Flipkart, announced it had raised $700 million, with five new investors helping the seven year old company cement its position in the vibrant Indian e commerce space. The Bengaluru based company has seen new investors coming in including Greenoaks Capital, Steadview Capital and the Qatar Investment Authority.
With an existing pool of investors such as DST Global and ICONIQ Capital, Flipkart has been able to raise a total of $1.2 billion in contrast to rival Snapdeal, which received $627 million from Japan’s Soft Bank and Amazon, which is investing $2 billion into the e-commerce pie.
Flipkart has issued a statement about the funds being raised and has expressed a desire to invest for the long run in India. “It is a world class technology company that believes in delivering superior customer experiences,” said a company spokesperson.
This latest deal raises Flipkart’s valuation to $11 billion which is more than some of the largest FMCG goods manufacturers such as Godrej Consumer and Dabur India. Flipkart is worth nearly half of IT services giant Wipro and has a market capitalisation of about INR 1.34 lakh crore. Even mid-sized IT firm Bangalore based Mindtree is valued less at INR 10,000 crore.
Flipkart has also seen a surge in shareholders and saw its numbers rise above 50. The company domiciled in Singapore has filed for a conversion to a public company.
The company has over 14,000 staff with more than 6 million monthly visits of its website. There are about 26 million-plus registered users who use the online retail service in India. With the latest raising of money, Flipkart along with Amazon and Snapdeal have heated up the e commerce space which is expected to grow to $43 billion by 2018. Flipkart’s worth is pegged at $7 billion, a first for any Indian Internet firm. 2015 has thus been a pivotal year for e commerce in India.