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: Cheaper wireless plans cut into AT&T 2Q profit

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

Swiss drug maker Roche posts 7 percent profit drop

1 hour ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

12 hours ago

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Facebook 2Q earnings, revenue soar (Update)

12 hours ago

(AP)—Facebook is on a roll. The world's largest online social network posted sharply higher earnings on Wednesday as revenue from mobile advertising continued to grow, and more people used it, more often.

Android grabs more tablet market share

14 hours ago

Global sales of tablet computers edged higher in the second quarter, in the slowest growth since 2009, research firm Strategy Analytics said Wednesday.

Microsoft CEO sees 'bold' plan as 4Q tops Street

Jul 23, 2014

(AP)—Microsoft Corp. CEO Satya Nadella painted an upbeat vision of the future Tuesday, saying that the next version of Windows will be unified across screens of all sizes and that two money-losing units—Nokia ...

User comments : 0