Flipkart gets $1 billion from global venture funds

Bangalore, July 29 (IANS) India's largest e-commerce market player Flipkart Tuesday announced it had raised a whopping $1 billion (Rs.6,015 crore) in fresh capital from global venture funds.

"We will use the fresh funds for long-term strategic investments in the country, especially in mobile technology," the city-based company said in a statement here.

The latest round of funding was co-led by the company's investors Tiger Global Management and Naspers.

Singapore's sovereign wealth fund GIC participated in the financing round along with its existing venture investors Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina.

"We believe internet will improve the quality of life for millions of Indians and e-commerce will play a big role in this change," Flipkart founder and chief executive Sachin Bansal said on the occasion.

The fresh equity comes months after the company touched $1 billion in gross merchandise volume, an indicator of total sales value of goods sold through a marketplace in a specific period.

"We plan to make shopping online simpler and more accessible through technology," co-founder Binny Bansal said.

With 22 million users and four million daily visits to its portal, the firm handles five million shipments a month.

"As the number of internet users across the country rapidly increases from 243 million currently, we want to empower as many citizens to shop or sell online, where mobile platform will accelerate the growth," Sachin Bansal said.

With a projected 500 million internet users by 2020, the company plans to take advantage of the huge opportunity by focusing on mobile technology.

"The fresh capital will enable us to invest in new products and accelerate the momentum to become a technology powerhouse," said Binny Bansal.

The seven-year-old company says it offers over 15 million products across 70 categories, including books, media, consumer electronics and lifestyle.

To stay ahead of competition from global e-commerce players like Amazon and eBay, Flipkart acquired rival and leading fashion e-tailer Myntra.com May 23 for an estimated $300 million (Rs.1,800 crore) to ramp up its focus on fashion.

Pioneering innovation in the supply-chain ecosystem, the company launched dedicated logistics and was the first to offer cash on delivery to change the way consumers bought products online.

"We also focused on making the online shopping experience seamless by unveiling the 30-day replacement policy, offered 24x7 customer support and introduced same day delivery in 50 cities across the country," the statement added.

"We will invest in training sellers for the marketplace, providing small and medium entrepreneurs, manufacturers and artisans a national platform to connect with millions of customers," Sachin Bansal said.