Indian e-commerce firm Flipkart raises $200 mn funds

Jul 10, 2013

India's top e-commerce company Flipkart said Wednesday it has raised $200 million from private investors in what it called the biggest one-time investment in an Indian online retail firm.

The money was injected by Flipkart's existing investors, South African technology group Naspers and private equity Tiger Global and Accel Partners, the Bangalore-based firm said in a statement.

The funds will be used to build and strengthen the firm technology capabilities and improve its supply chain.

"This validates the belief that our have not only in our capabilities as a market leader - but also in the potential of e-commerce in India," said Sachin Bansal, co-founder and chief executive of Flipkart.

Flipkart and Jubin Mehta of Yourstory.in, an online site which tracks startups and entrepreneurs, said it was the largest single investment in an Indian e-commerce firm.

The company is battling fierce competition from rivals that include online retail giant Amazon, which launched an India-dedicated shopping site last month.

Flipkart was started by two former Amazon employees.

Since 2007 Flipkart has expanded beyond books and DVDs to footwear, electronics and , to gain 9.6 million registered users and become one of the country's biggest entrepreneurial success stories.

Flipkart earned revenues of five billion rupees ($83 million) for the fiscal year to March 2012. It has not give any earnings data for the past financial year.

India has just over 50 million active Internet users of whom around 40 percent have made purchases online, according to industry figures.

Explore further: How does Uber's surge pricing work – and how ethical is it?

add to favorites email to friend print save as pdf

Related Stories

Amazon launches online shopping site in India

Jun 05, 2013

Online retail giant Amazon launched a new Internet shopping site in India on Wednesday, stoking already fierce competition in the fast-expanding "e-tailing" market.

India's startups lacking guardian 'angels'

May 08, 2013

It is seen as a land of entrepreneurs, economic growth and huge business potential, but India appears to be failing its promising startup companies which are struggling to find investors.

Amazon tests waters in India

Feb 08, 2012

US online retail giant Amazon has made its first foray into India with launch of a shopping website, Junglee.com, as it tests the waters for a possible full entry into the nation's e-commerce market. ...

Recommended for you

Underfire Uber ramps up rider safety

14 hours ago

Uber is ramping up driver background checks and other security measures worldwide after the smartphone-focused car-sharing service was banned in New Delhi following the alleged rape of a passenger.

Sony cancels NKorea parody film release after threats

15 hours ago

Hollywood studio Sony Pictures on Wednesday abruptly canceled the December 25 release date of "The Interview," a parody film which has angered North Korea and triggered chilling threats from hackers.

Sprint accused of billing for unwanted services

19 hours ago

(AP)—Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers hundreds of millions of dollars in charges for text message alerts and other services that they didn't order.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.