Flipkart Gets Record Funding, Aims to Become $100 Billion Firm

[Brahmos_2]

Flipkart, India's biggest e-commerce player, on Tuesday announced it has raised $1 billion or Rs. 6,000 crore ($1 = Rs. 60) in fresh funding, the biggest ever by an Indian internet company in a single round. And it is aiming much higher.

Young IITians Sachin Bansal and Binny Bansal, who set up Flipkart in 2007 with an investment of four lakh rupees, announced the new funding in Bangalore today, saying, "India can produce a 100 billion dollar company in five years - we want to be that company." (Watchvideo)

IT major TCS is India's highest valued firm with market capitalisation of nearly $83 billion, or Rs. 5 lakh crore.

Flipkart is now expected to be valued at $5 billion (Rs. 30,000 crore), according to some estimates. The company has seen a turbo-charged growth, hitting an annualised sales mark of $1 billion (Rs.6,000 crore) in 2014 - a year ahead of its target.

Co-founder Binny Bansal said that the company is not contemplating an initial public offer (IPO). "With this fund raising, our IPO plans have been put on the back burner," he told NDTV.

Flipkart said said Singapore sovereign wealth fund GIC participated in the fundraising along with existing investors Tiger Global Management LLC and the South African media company NaspersLtd.

Flipkart co-founder Sachin Bansal said the funding would help the e-tailer to invest more into e-commerce ecosystem like logistics and payment systems. Sachin Bansal is also optimistic that India can produce dozens of billion dollar internet companies. "India's internet ecosystem is going to be one of the most vibrant in the world in the future with half a billion internet users," he told NDTV. (Watch video)

The company had earlier raised over $700 million (Rs. 4,200 crore) in previous rounds. In May this year, Flipkart had raised $210 million (Rs.1,260 crore) in funding from a group of four investors led by internet-focused investment group DST Global.

Besides looking at fresh acquisitions, Flipkart could use the fresh funding for expanding its operations. Also in May this year, Flipkart acquired the country's biggest fashion portal Myntra for around $300 million (Rs. 1,800 crore). "Acquisition will be an important part of our growth strategy," Binny Bansal told NDTV.

For Flipkart, the competition is also hotting up. Besides Amazon's expanding presence in India, world's largest retailer Wal-Mart too has begun online sales in the cash-and-carry segment in some cities. Reliance Retail, India's largest retailer by revenues, is also expected to significantly increase its online presence.

The Indian e-commerce market was worth $13 billion (Rs. 78,000 crore) in 2013, with online travel accounting for over 70 per cent of consumer e-commerce transactions. Online sales of retail goods totaled $1.6 billion (Rs. 9,600 crore) in 2013, according to research firm Forrester, and are expected to reach $76 billion (Rs. 4.5 lakh crore) by 2021, Technopak said. (With Agency Inputs)

Flipkart Gets Record Funding, Aims to Become $100 Billion Firm - NDTVProfit.com

 

[Lord ZeN]

Good to see that Indian firms are becoming successful.

 

[greatone]

I buy a lot of stuff from them.
Very good and professional service.
I would recommend Flipkart to everybody.

 

[shashikant]

keep going .

 

[Echo_419]

Flipkart, India's biggest e-commerce player, on Tuesday announced it has raised $1 billion or Rs. 6,000 crore ($1 = Rs. 60) in fresh funding, the biggest ever by an Indian internet company in a single round. And it is aiming much higher.

Young IITians Sachin Bansal and Binny Bansal, who set up Flipkart in 2007 with an investment of four lakh rupees, announced the new funding in Bangalore today, saying, "India can produce a 100 billion dollar company in five years - we want to be that company." (Watchvideo)

IT major TCS is India's highest valued firm with market capitalisation of nearly $83 billion, or Rs. 5 lakh crore.

Flipkart is now expected to be valued at $5 billion (Rs. 30,000 crore), according to some estimates. The company has seen a turbo-charged growth, hitting an annualised sales mark of $1 billion (Rs.6,000 crore) in 2014 - a year ahead of its target.

Co-founder Binny Bansal said that the company is not contemplating an initial public offer (IPO). "With this fund raising, our IPO plans have been put on the back burner," he told NDTV.

Flipkart said said Singapore sovereign wealth fund GIC participated in the fundraising along with existing investors Tiger Global Management LLC and the South African media company NaspersLtd.

Flipkart co-founder Sachin Bansal said the funding would help the e-tailer to invest more into e-commerce ecosystem like logistics and payment systems. Sachin Bansal is also optimistic that India can produce dozens of billion dollar internet companies. "India's internet ecosystem is going to be one of the most vibrant in the world in the future with half a billion internet users," he told NDTV. (Watch video)

The company had earlier raised over $700 million (Rs. 4,200 crore) in previous rounds. In May this year, Flipkart had raised $210 million (Rs.1,260 crore) in funding from a group of four investors led by internet-focused investment group DST Global.

Besides looking at fresh acquisitions, Flipkart could use the fresh funding for expanding its operations. Also in May this year, Flipkart acquired the country's biggest fashion portal Myntra for around $300 million (Rs. 1,800 crore). "Acquisition will be an important part of our growth strategy," Binny Bansal told NDTV.

For Flipkart, the competition is also hotting up. Besides Amazon's expanding presence in India, world's largest retailer Wal-Mart too has begun online sales in the cash-and-carry segment in some cities. Reliance Retail, India's largest retailer by revenues, is also expected to significantly increase its online presence.

The Indian e-commerce market was worth $13 billion (Rs. 78,000 crore) in 2013, with online travel accounting for over 70 per cent of consumer e-commerce transactions. Online sales of retail goods totaled $1.6 billion (Rs. 9,600 crore) in 2013, according to research firm Forrester, and are expected to reach $76 billion (Rs. 4.5 lakh crore) by 2021, Technopak said. (With Agency Inputs)

Flipkart Gets Record Funding, Aims to Become $100 Billion Firm - NDTVProfit.com

Good to hear Indian companies are doing good

 

[hiphop]

Go Flipkart Go
Snapdeal is also doing good

 

[wolfschanzze]

I buy most of my stuff from them, PC games and books,
Very good service and cash on delivery system is good option,
although i heard this was stopped for some cities and states because the people there would order pay cash on delivery but wouldn't pay up when they received the stuff ,in effect fooling the company and wasting the time, money,logistics involved.
I don't know if this problem is solved.
But they have excellent service in metros, tier II and tier III cities.

They should include more games, books and other stuff in their website, when you compare it with Amazon.
I would like to see online game e- recharges , to be able to buy monthly subscription for online games etc. like a major gaming portal along with combo packs and offers

 

[protest]

I suggest any entrepreneurial Pakistani on this forum to set up something like this soon. You could become next big thing in Pakistan.

 

[AUSTERLITZ]

Buy all my books and games from them.Excellent service.Recommended.

 

[scorpionx]

They deliver the package well within schedule. The collection of books is astonishing. Hope they prosper more and continue the good service.

 

[assassin123]

i ordered a my new phone 2 days ago and recieved it within a day, very good service,provides real time tracking,easy returns,speedy service recommended for all flipkart rocks.

 

[Viny]

A company that has built its own payment gateway, its own logistic management system, its own distributed warehouse management system in regard to indian scenarios deserves a big applaud and success. And this is just starting

 

[Indian Tiger]

I really wonder, how Flipkart managed to be a billion dollar enterprise in a short span, which was started at just 4lakh rupees(hardly 8000USD). Still what's even more surprising is their timely delivery and the way packing is, I have made 15+ orders thru flipkart, all were delivered well with in time, even electronic goods & mobile phones were delivered without a single scratch on it. Even ebay can't compete Flipkart, i had experience with both. I wont be surprised, with this star quality even if they become a world No1 ecommerce company with in next 10 years.

 

[Supply&Demand]

I bought my laptop and camera last year when i was in India..I was impressed with their service and quality of the electronic goods offered..i hope they get better and better...

I really wonder, how Flipkart managed to be a billion dollar enterprise in a short span, which was started at just 4lakh rupees(hardly 8000USD). Still what's even more surprising is their timely delivery and the way packing is, I have made 15+ orders thru flipkart, all were delivered well with in time, even electronic goods & mobile phones were delivered without a single scratch on it. Even ebay can't compete Flipkart, i had experience with both. I wont be surprised, with this star quality even if they become a world No1 ecommerce company with in next 10 years.

Ebay has a riskfree model..basically it is C2C model...Flipkart is a B2B /B2B2C model...which is risky at the beginning...but it has worked out pretty well and that is because of their quality of work

 

[damiendehorn]

So flip kart is indias answer to amazon? Are they available throughout india? Outside india? What ecommerce platform do they use, bespoke or off the shelf?