Nasper and Tiger Global to pump $ 150 million in Flipkart
Indian online retailer Flipkart is set to raise $ 150 million as an additional round of funding led by South Africa’s media group Nasper and existing investor Tiger Global, according to various reports. This will infuse fresh capital into the company which operates in a crowded segment which is known for its high burn rates and razor thin margins.
Flipkart has been looking to raise more money to try and get a foot-hold in newly launched categories including its in-house label Digiflip. At the time of writing this post, the company is yet to confirm if the latest round of funding has been closed or not.
In total, Flipkart would have raised $ 331 mn from Accel India, Tiger Global and Nasper if the latest round of funding is closed. Accel India invested $ 10 mn in 2009; Tiger Global released $ 20 mn in 2010. Meanwhile, Accel and Tiger Global had pumped massive $ 150 mn at a valuation of $ 850 mn in January this year. During that round, Flipkart valuation settled down at $ 850 million from $ 1 billion mark.
Meanwhile, in June this year Flipkart hit a new milestone as it crossed gross sales of Rs 100 crores for the first time. The Rs 100 crore figure has been seen as significant jump in monthly gross sales from an average of around Rs 42 crore during previous financial year. The number of daily orders hit 25,000 mark in June, almost a 5x rise in contrast of June 2011 orders.
Earlier in June, according to a report, Flipkart was hit by growth pangs, making investors edgy with its financials. The report stated that analysts and venture capitalists indicated Flipkart was making considerable losses on transactions of books that accounted for 65 per cent of its sales volume and 40 per cent of revenue. However, in January this year, Sachin Bansal, CEO and co-founder of Flipkart, had attributed operational loss owing to investments it was making in technology, supply chain, logistics, customer support and marketing to scale up the business.