Flipkart raises $200 million

Flipkart raises $200 million

Online retailer Flipkart has raised $200 million from its existing investors including Naspers, Accel and Tiger Global in a deal that seems to be the largest in Indian e-commerce history.

This investment comes at a time when the sector is finding it difficult to break even with operations cost going up and customer seeking even further discounts on products.
According to the company, the funds will be used for building and strengthening Flipkart’s technology capabilities, bolstering the robust supply chain and developing the talent pool.

Flipkart Co-founder and CEO Sachin Bansal said, “This investment validates the belief that our investors have not only in our capabilities as a market leader – but also in the potential of e-commerce in India. This will not only enable us to reach our goal of $1 billion GMV by 2015 but also help us achieve bigger milestones in the future.”

In August this year, Flipkart had raised close to $150 million in its 4th round of funding. Apart from existing investors Tiger Global and Accel Partners, two new investors - MIH (part of Naspers Group) and ICONIQ Capital - had participated in that round through a minority stake. MIH also got a representation on the board.

The company has 96 lakh registered users and has more than 10 lakh unique visitors every day. Recently, it launched PayZippy, an online payments solution, currently available for Indian merchants.

"The growth potential is enormous and our investors share this vision. Each round of funding has come at a strategic point during our growth. Our aim is to continuously improve the shopping experience for customers and provide sellers with a highly scalable platform on which to do business.” Flipkart Co-founder and COO Binny Bansal said.

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