Deals

‘Amazon of India’ Flipkart closes massive $360M round of funding

Above: Flipkart cofounders Sanchin and Binny Bansal.

Image Credit: InspiredMe

India is a giant country with a giant population, so it’s no surprise that it’s also the home of a giant e-commerce company backed by a giant amount of venture capital.  

Flipkart, the “Amazon of India,” has raised $160 million, bringing its total fifth round of financing to an astonishing $360 million. 

This financing adds to the $200 million Flipkart raised in July, bringing its total capital raised to $540 million.

FlipKart was founded in 2007 and is one of the biggest websites in India. It sells everything, including electronics, apparel, books, kitchen supplies, and more. It offers low prices, discounts, and deals as well as free shipping for orders over 500 rupees (a little more than $8), free returns, and the option to pay cash on delivery — all things key for attracting customers and staying competitive in the Indian market.

Working out supply chain and logistics is one of the biggest challenges e-commerce companies face in emerging markets. A report in Indian tech blog Medianama said this investment will go toward improving Flipkart’s technology and supply chain.

The company is also quickly adding new categories, like spots and fitness and home furnishings. It claims to have 10 million registered users and 1 million unique daily visitors.

It’s main competition is Amazon India, which Medianama said is also “aggressively adding more categories.”

India has 52 million active Internet users and 40 percent of them have shopped online, according to the Internet and Mobile Association of India.

It’s Internet population is growing fast, and e-commerce is one of the areas where this is seen the most acutely. The growth is driven by a rising middle class and urban population that appreciate the access online shopping provides to products that aren’t readily accessible.

New investors Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina, and Vulcan Capital contributed to this round, with participation from existing investor Tiger Capital.