Flipkart has raised another $700 million (Rs 4,300 crore), less than six months after the country’s largest e-tailer surprised everyone with the largest fund-raising by an Indian online retailer so far, $1 billion, reflecting the investor confidence in the fiercely competitive e-commerce space. Significantly, this latest round of rasing funds — which the company closed on Saturday and saw participation from five new global investors — also underlines e-commerce companies’ desire to seek funds to keep up with their discount-led pricing model.
“As with previous funds raised, these funds will be used towards long-term strategic investments in India and to build a world-class technology company, delivering superior customer experiences,” the firm said in a statement.
In this latest round of investment, the company saw participation from new investors, including Greenoaks Capital, Steadview Capital and Qatar Investment Authority, along with existing investors such as DST Global, ICONIQ Capital and Tiger Global, bringing the total number of investors above 50. This year, Flipkart has raised a total of $1.9 billion and close to $2.7 billion since it was founded by Sachin Bansal and Binny Bansal in 2007.
“Flipkart Limited (incorporated at Singapore) has filed with ACRA Singapore for conversion to a Public Company. This is a mandatory procedure for all companies where the number of shareholders exceeds 50,” Flipkart said in a statement.
The company also stated that the filing is “in no way indicative of any upcoming IPO or of any corporate activity that the company is engaged in either in Singapore or any other part of the world.”
Flipkart is now valued at about $11 billion (Rs 69,000 crore), more than some of the country’s largest consumer companies. Flipkart is now worth nearly half of India’s fourth-largest IT firm Wipro, which has a market capitalisation of Rs 1.34 lakh crore, and nearly seven times the mid-sized IT services firm Mind-Tree that is valued at around Rs 10,000 crores.