The e-commerce player, whose future looked bleak, a few months back, gives it back by raising another huge amount of funding. This time Flipkart, one of India‘s largest marketplace, has raised $160 million from from private equity investors. The investors include Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina , Vulcan Capital and Tiger Global. (The investment is surely more than what was expected, like we reported.)
This takes the total amount raised by Flipkart, this year, to $360 million. The amount is has been raised to drive, build and strengthen technology and accelerate its supply chain.
Its been only three months that Flipkart made news by raising $200 million, the largest amount in the Indian e-commerce segment so far. And now one of India’s largest marketplace is in talks to further raise $125 million from its existing investors, Tiger Global Management Llc, Accel Partners, Iconiq Capital, and MIH.
The investment is being driven for Flipkart Holdings Singapore, an entity created early this year in order to comply with the Indian laws of FDI in e-commerce.
What’s exciting is that when the company had sold its front end operations to WS Retail India in February this year, it was speculated that this was the end of the one of the old e-commerce players on the Indian retail circuit. But with raising one of the largest investments three months back, Flipkart, quietly back-flipped and made a grand re-entry into the market. “Now who’s your daddy!” moment!
Reading about e-retail everyday, I have realised that Flipkart has been getting all the eyeballs for all good and bad reasons. Amidst the questions arising on its survival, a news of revival emerges.
If its Flipkart, it has to be big, hence this time it is the largest investment in online retail space. The e-retailer raises $200 million, after various news have been flooding regarding the sale of front end operations, stopping of deliveries in UP and states around of SKUs beyond certain price and others.
The much wanted investment was made by its existing investors Tiger Global, Naspers, Accel Partners and Iconiq Capital.
According to Sachin Bansal, the announcement will only put the media and business queries on whether or not the e-commerce business worth it.
“In 2011 we set a goal of reaching 1 billion in GMV by 2015. We are more than half way there already and we should be able to reach the target before 2015,” Bansal reportedly divulged.