After raising USD 1 billion back in July, the Indian e-commerce website Flipkart has now secured a commitment of USD 180 million by Hong Kong-based investment firm Steadview Capital. According to the sources familiar with the deal, this investment is also a part of the third round of fund-raising done in November 2014.
“Steadview has committed USD100 million of the USD 180 million and as the subsequent tranches close, more new investors will come in,” one source familiar with the deal told ET.
As the deal shall close, it will value the Bengaluru-based firm at USD 11 billion. “The commitment for this round is USD 700 million, but as talks keep evolving that amount might vary slightly,” said the second source.
Started by two ex-Amazon employees Sachin Bansal and Binny Bansal, the company had received USD 210 million in Series F round in May this year. 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.
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. The firm are now expected to increase the reach of their logistics services and invest in improving back-end technology support.
Steadview had picked stakes in furniture e-tailer Urban Ladder and taxi aggregator Olacabs, this will be the first investment in an Indian e-commerce firm.