After raising USD 1 billion back in July, the Indian e-commerce website Flipkart has secured USD 500-600 million in a fresh round at a valuation of USD 10 billion.
The round was led by Tiger Global, South Africa’s Naspers and DST Global, along with others, which have invested in USD 50-100 million each. Besides the existing investors, this new round also saw a new unnamed investor, sources familiar with the matter told TOI.
This would be third-fund raise this year for the company, started by two ex-Amazon employees Sachin Bansal and Binny Bansal. In May this year, the company had received USD 210 million in Series F round. Including the latest round, it had raised around USD 2.3 billion in funding till date.
“Although there was a lot of interest from new investors, Flipkart was not keen on raising more money at this point. This new round is largely being done by the large existing investors,” said a source.
This latest round will surely be used to gain an edge against rivals Amazon and Snapdeal. Amazon recently invested USD 2 billion to fuel its Indian growth and Japanese Softbank invested USD 627 million into Delhi-based online retailer Snapdeal, which is another big competition for Flipkart.
Also, online retailer already crosses USD 3 billion revenue run rate by making exclusive partnership with mobile handset makers Motorola and Xiaomi and and its growing market share in the fashion category after its acquisition of Myntra. It is backed by eleven investors and had acquired three companies till date such as Myntra, LetsBuy.com and WeRead.
Even with the large amount of funds being pumped into Flipkart, it is still facing heat from several other companies besides Amazon and Snapdeal, like Shopclues.com, Jabong.com, and others. Now that it has Myntra’s support for the fashion segment, and more funds to grow, will it be able to fend off others and grow as a sole reader? Share your thoughts in the comments below