Flipkart is known as the “Amazon of India.” The company has raised $200 million (around 1,200 crore in rupees) in Series E funding. Investors that participated in this round includes MIH (an investment firm owned by Naspers), Tiger Global, Accel Partners, and Iconiq Capital. Flipkart has now raised a total of around $380 million. The company plans on using the funding to power investments in their technology, supply chain automation, hiring, and training. At this kind of funding, it is likely that the company is now valued at well over $1 billion.
“There was a lot of skepticism about Flipkart and e-commerce in India. This funding refutes that,” stated Flipkart chief executive officer Sachin Bansal. The funding will help the company hit their goal of $1 billion in gross merchandise volume (revenue earned by merchants that use Flipkart) by 2015.
Flipkart recently switched from straight-up sales to a marketplace model where they simply host the merchants and retailers. Switching to a marketplace model has worked well for other overseas e-commerce companies like Alibaba and Rakuten. Flipkar launched a mobile payments solution for merchants last week also.