Flipkart clicks up $700 m in new financing round

Flipkart clicks up $700 m in new financing round

Variegated e-commerce major Flipkart.com on Saturday announced a fresh investment round of $700 million led by new investors Baillie Gifford, Greenoaks Capital, Steadview Capital, T Rowe Price Associates​ and Qatar Investment Authority.

The Bangalore-based portal’s existing investors DST Global, GIC, ICONIQ Capital and Tiger Global, the company’s angel investor, participated in the latest financing round, Flipkart said.

“As with previous funds raised, these funds will be used towards long-term strategic investments in India and to build a world-class technology company, delivering superior customer experiences,” the company said in a statement.

The company said that Flipkart Limited, which is incorporated in Singapore, has also filed with Singapore regulator ACRA Singapore for conversion to a public company. This is a mandatory procedure for all companies where the number of shareholders exceeds 50. The filing will ensure that Flipkart is compliant with Singapore laws.

The company also clarified that the filing is not indicative of any upcoming IPO or any other corporate activity that the company is engaged in either in Singapore or any other part of the world.

Launched in October 2007, Flipkart.com currently offers over 20 million products cross over 70 categories, including books, media, health, fashion, consumer electronics and lifestyle. It currently delivers 5 million shipments every month.

In May, Flipkart had acquired Myntra Designs Pvt Ltd, the company which runs the online fashion and apparel shop Myntra.com.

Currently 20,000 people strong, Flipkart has 26 million registered users clocking over 8 million daily visits.

In July this year, Flipkart raised $1 billion in a funding round co-led by existing investors Tiger Global and Naspers, with participation from GIC, a Singapore-based sovereign wealth fund, Accel Partners, ICONIQ Capital, DST Global, Morgan Stanley Investment Management and Sofina. Earlier, it had netted $210 million from DST Global, Tiger Global, Naspers and Iconiq Capital.

Flipkart clocked an annual revenue run rate of $1 billion in February this year, or sales worth over Rs 500 crore that month. Its previous milestone of doing sales worth Rs 100 crore happened in June 2012.

Last year, Flipkart raised $360 million in two tranches from Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina, Vulcan Capital and Tiger Global.

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