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In its 3rd round this year, Flipkart raises $700 Million to fight Amazon, Snapdeal and others

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Confirming previous rumours, India’s largest e-commerce platform Flipkart today announced that it has raised $700 million in a fresh round of funding. This takes its overall funding to $2 Billion for this year alone.

This is the third fund raise that the e-commerce giant has seen this year. In May, Flipkart had raised $210 million (Rs 1,200 crore), while it raised an astounding $1 billion (Rs 6,000) in July 2014. Moreover, this fresh funding round has raised Flipkart’s valuation to a staggering $11 billion, which is more than some of the established business conglomerates within the country.

The new investors include Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment Authority while the existing stakeholders  DST Global, GIC, ICONIQ Capital and Tiger Global, missed no opportunity to invest their sum in the ‘company on rise’. This round saw Qatar Investment authority as the largest single investor as it picked up a $150 Million stake in the e-commerce company.
India’s e-commerce market has seen huge influx of funds this year. Flipkart’s close rival Snapdeal also received $627 million from Japan’s SoftBank while Amazon infused $2 billion into its Indian counterpart in an attempt to stand somewhere in competition with Snapdeal and Flipkart.
Apart from the fund-raise, Flipkart has also filed to convert into a public company in Singapore since the company has surpassed 50 shareholders which is a mandatory process in the country. Though Flipkart declined the possibility of an IPO, it has been rumoured for long that the company will issue an IPO in two to three years from now.
Here’s the complete announcement that company made today-

Flipkart, India’s largest e-commerce marketplace, today announced a US $ 700 million investment with new investors: Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment Authority, along with existing investors: DST Global, GIC, ICONIQ Capital and Tiger Global, who also participated in this latest financing round.

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.

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. This filing ensures we are in compliance with the laws of Singapore and 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.

Senior Writer

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