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E- tailer f lips new page in funding

July 30, 2014



E- commerce giant Flipkart raises ` 6,000 crore in fresh funds $ 1.7 bn raised from investors, including the current transaction Funds will be used to expand online and mobile services

THE largest domestic e- commerce company Flipped a new page in the funding history of online shopping in India on Tuesday by raising $ 1 billion ( over ` 6,000 crore) in fresh funds from a group of investors. Though Flipkart did not disclose the new holding pattern, the funding has raised its value to about $ 7 billion, according to sources.

Co- led by existing investors Tiger Global Management and Naspers, Singapore's sovereign wealth fund GIC, Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina also participated.

The company Accel Partners, Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital among its other investors.

Founded in 2007 by brothers and IITians Sachin and Binny Bansal, Bangalore- based Flipkart is battling US giant Amazon for supremacy in the hypercompetitive local market.

Flipkart will utilise funds on expanding its online and mobile services focussing on areas like R& D, enhancing customer experience and seller base. Flush with cash, Flipkart is also scouting for acquisitions which can help it expand into newer technologies like wearables and robotics— a move that it believes will impact mobile commerce in the days to come.

" The funds will be used to make long- term strategic investment in India, especially in mobile technology," Sachin told reporters here. On the company's initial public offer plans, Bansal said, " IPO is not in consideration at all."

THE RISE

Flipkart began with music and books and expanded rapidly into mobile phones, appliances and other goods ; Flipkart had earlier drawn backers such as New- York based venture capitalists Tiger Global Management LLC and announced earlier this year that it had passed the $ 1- billion sales mark ; In May, Flipkart said it was taking over rival Myntra, India's top online fashion venture, in a deal analysts estimated at $ 330 million ; Flipkart has been helped greatly by its service that allows customers to pay by cash- on- delivery


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Source: Mail Today (India)


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