We have been in the know that Flipkart’s talks with General Atlantic failed at the last moment owing to valuation numbers and they instead raised the next round from existing investors, i.e. Accel Partners and Tiger Global Management.
Mint reports that Flipkart has raised $150mn at a valuation of $850mn from existing investors, i.e. Accel Partners and Tiger Global Management.
Before this, the company raised $31 mn in three rounds and the revenue has grown from Rs. 11.6 CR (in 2009-10) to Rs. 50 Cr and aims to reach $1Bn within the next 2 years.
Given that Amazon is launching its ecommerce service in India (this quarter and from what we know, Feb month itself), Flipkart needs to ramp up at the earliest and quickly build presence in Tier-II and Tier-III cities.
Flipkart or Amazon? Do you have a brand loyalty or you will go after the one offering lowest price?
India’s e-Commerce Story
About 150 million people in India or around 75 million households are ready for ecommerce in India today. However, less than 10 million are engaged in active ecommerce today. The potential of consumer e-commerce in India by 2024-2025 is likely to touch around 594.8 million individuals or 297.4 million households [read this report on ecommerce in India].
Recommended Read: The Flipkart Story