Flipkart Secures $1 billion to Further Enhance It E-commerce in India.
Flipkart has been undergoing quite the interesting year. As of today, the India-based e-commerce company has confirmed the recent rumors that it has manage to raise over $1 billion investment round, as it searches for new verticals, expands its operations and stave off challenges from both Amazon and eBay.
A recent announcement has confirmed that this round has included participants from existing investors such as Tiger Global, Yuri Milner’s DST Global group, Accel Partners, ICONIQ Capital, Morgan Stanley Investment management and Sofina. Prior to today’s news, Flipkart has undertaken just over $700 million from investors.
The company most recently manage to secure $210 million previously during May, just after it acquired fashion rival company Myntra for and undisclosed amount which was stated to total around $300 million. Every since, Flipkart jas launched its own line of smartphone and tablets. in addition to a member service that is similar to that of Amazon prime that provides a host of benefits for 500 INR around US$8.50 per year.
This recent increase in capital is about giving the company a footprint to succeed in India’s e-commerce market that has immense potential as internet penetration and the rate of smartphone ownership increase. A report done by Accel partner earlier during the year shows predictions of the number of online shoppers that will double up all the way to 40 million by the year of 2016, with their spending set to increase four-fold to $8.5 million.
While being interviewed by Quartz, Kunal Bahl, CEO of Snapdeal and rival to Flipkart, predicted that the value of online shopping market in India could reach as far as $50 billion by the year of 2020. This is a set of immense potential.
“We believe the internet will improve the quality of life for millions of Indians, and e-commerce is going to play a huge role in this change. The focus at Flipkart is to continue to make shopping online simpler and more accessible through the use of technology,” said Flipkart founders Sachin Bansal and Binny Bansal in a statement.