E-commerce giant Flipkart.com is in discussions with existing and new investors to raise another large round of funds right after raising a mammoth $1 billion including Tiger Global, Naspers and Government of Singapore Investment Corp., the city-state’s sovereign wealth fund.
India’s biggest online retailer, Flipkart, is said to be close to raising another round of funding, at a valuation of over $10 billion, Wall Street Journal Reports. This would be the company’s third round of investment this year, having already raised $210 million and $1 billion. In 2007, Flipkart received $1.8 billion including $1.57 billion over the past 15 months. It raised $360 million last year in two rounds and followed that with a $210 million fund raising, mostly from DST Global, in May.
According to Mint research, venture capital firms and others have invested more than $3 billion into Internet companies this year. After China, the next bunch of large e-commerce companies are likely to come from Asia’s third-largest economy, India, it being one of the potentially large e-commerce markets in the world.
Flipkart, Amazon India and Snapdeal are engaged in a highly cash intensive battle for dominating India’s e-commerce market, which was valued at $3.1 billion last November. The Indian e-commerce industry is booming with a 70 percent increase in revenue, expected to touch $6 Billion in 2015. A rise in the number of online shoppers is also expected to rise and touch 40 million in the next two years,from the current 25 million. In this scenario, it is hardly surprising that companies are looking at investing huge amounts of money into the Indian e-commerce players. Last week Snapdeal said it received $627 million from Japan’s SoftBank Group and Amazon pumping in as much as $2 billion in the company’s Indian operations over time.