Bangalore-headquartered company that has acquired Myntra for an estimated USD 370 million last week, is now raising USD 500 million in a fresh round of funding led by Russian investment firm DST global, as per an Economic Times report. The company aims to utilize a part of the the raised funds in Fashion category over the next 12-18 months and scaling up its existing operations in Bangalore.
Flipkart was launched in 2007 by Co-Founder Binny Bansal and Sachin Bansal. It is an online shopping destination for music, books, electronics and movies. The company provides clean user experience by reliable service on-time delivery.
Also Read: [Timeline] Flipkart: The journey so far
Till date, including this round, it has secured a total funding of USD 1040 million. In 2013, it has raised USD 360 million in series E round by Naspers, Accel, Tiger global management and others. Apart from these, the company has raised recent investment of USD 150 million in Series E, USD 20 million in series C and USD 10 million in an unknown round by Iconiq capital and existing investors.
The company has launched customer service initiatives like same-day delivery in over 20 cities and at-home trials for certain fashion categories. It has also crossed USD 1 billion sales in March.
The company currently competes with brands such as Snapdeal that has recently raised $100 million (INR 585 crore) last week, and an increasingly aggressive Amazon.in. Amazon has been investing funds in its India operations and has expanded to over 22 product categories.
As per the market analysts, in order to maintain its position, Flipkart will have to continue investing in its backend operations as well as the discounting strategy adopted, will also play a major role in gaining over players like Snapdeal and Amazon.
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