Flipkart Raises Fresh $200 mn from Existing Investors Tiger global, Naspers & Others
Homegrown e-commerce company Flipkart has raised $200 mn from existing investors, the company said on Wednesday. “We are getting into a bigger league than what we have done so far,” said Sachin Bansal, the CEO & Co-Founder of Flipkart.
The investment will be used to build technology, e-books business, supply chain and datacenter capabilities. Current investors of Flipkart include Tiger Global, Naspers, Accel Partners and ICONIQ Capital.
This is the largest investment raised by an e-commerce company in India ever. Earlier, Flipkart had raised $150 mn from Accel Partners and Tiger Global. Rival e-commerce firm Snapdeal raised $50 mn from e-bay in March.
Last month, Flipkart did 1.3 lakh shipments on a single day and is on track to reach $1 billion in gross merchandise sales by 2015, Bansal said. “To ship on such a scale, Flipkart has to work harder on the supply chain side, he added. “We need to be able to handle millions of shipments a day,” he said.
“We will also make investments in talent pool. There is no ready made talent in India. We will invest heavily on creating and hiring such talent,” he added.
The e-commerce industry is expected to grow to $76 bn by 2021, according to a Technopak report. “30-40% of India will be online by then,” said Bansal who added that as the ecosystem gets better, the %76 bn target is possible.
The online retailer faces competition from Amazon, which recently entered the Indian market and others such as Myntra and Snapdeal.
Flipkart recently launched a payment gateway service called PayZippy for Indian merchants, pushing competition in the online payments industry which has incumbents like CCAvenue, PayTM and PayU.
Flipkart Facts: 2013
Registered users – 96 lakhs
More than 10 lakh unique visitors every day
Peak items shipped in a day – 1.3 lakhs (June 2013)
Launched PayZippy, an online payments solution
New categories that we have entered (June 2012 – 2013): Apparel, Footwear, Toys, Accessories, Sports and fitness, and eBooks
Watch Flipkart founder, Sachin Bansal talk about Flipkart journey, IPO etc @UnPluggd:
Recommended Read: Sachin Bansal UnPluggd on Flipkart IPO, Amazon, Flyte & More