Flipkart Secures $210 Million From DST Global.
India’s largest e-commerce firm Flipkart India Pvt. Ltd, has recently announced that it has manage to secure a total of $210 million, mostly gained from a Russian investment firm by the name of DST Global Solutions Ltd, during the company’s third large round of funding in less than a year.
“Among all the investors we know, (DST) are the best in their technology focus,” Flipkart’s chief executive officer and co-founder Sachin Bansal told reporters at the company’s office in Bangalore.
Flipkarts currently existing investors Tiger Global Management, Accel Partners and Iconiq Capital contributed money into this recent round of financial funding.
Flipkart’s fundraising has show both the increasing amount of large capital that is required to develop a national e-commerce business as well as the ferocious awakening of investors appetite for India’s fledgling Internet firms.
Flipkart has nor received over $78- million in cash since its initially launching back in 2007, which includes $360 million from its previous year. The company managed to surprise analysts during its previous July by announced that among the funding drought in e-commerce, it was raising a total amount of $200 million from its currently existing investors which includes Tiger Global Management and Accel Partners. Three months afterwards, a new group of firms, including the Dragoneer Investment Group and Morgan Stanley Investment Management Inc., had decided to invest over $160 million into Flipkart in a deal that valued the company to be roughly around $1.6 billion.
During the past week, Flipcart acquired online fashion retailer Myntra.com for and estimated price of over $330 million, most of it in stock, to help it expand its lead over its competitors, Amazon India and Snapdeal.com.
During the past year, top local e-commerce sites have significantly increased their spending on technology, marketing and supply retail chains, needed hundreds of million of dollars in funding, which investors have been recently providing quite easily.
Snapdeal, had manage to raise a total of $100 million from new investors, during the past week, in less than three months after manage to gained over $133.7 million.
The awakening of investors interest comes from after two years when most of the venture capital firms had leaned away from local e-commerce comapnies. Currently, large global financiers such as Morgan Stanly, Singapore-based wealth fund Temasek Holding and US investment firm BlackRock, are queuing up to invest in India’s e-commerce business
The e-commerce business within India has been valued to be around $3.1 billion, excluding travel services and tickets, according to a report published in November by the CLSA.
The e-commerce business in India is valued at $3.1 billion, excluding travel services and tickets, according to a November report by CLSA.