Indian E-Commerce Marketplace Closes $1 Billion Round of Funding
A funding round ending in the millions is a success for a lot of companies, but one in the billions is a game changer.
With the second largest population in the world, India is one of the largest untapped e-commerce markets on the planet. However, thanks to recent interest, the relatively young market is poised for tremendous growth and one Indian e-commerce company is aiming to be a dominant figure for the foreseeable future.
Flipkart, an e-commerce marketplace much akin to Amazon, has announced the reception of USD $1 billion in a single round of funding.
The funding comes after the e-commerce retailer announced a $1 billion in gross sales earlier this year. Flipkart states that they plan to use the funding to make long-term investments in India with a concentrated effort in mobile technology.
In a joint statement from founders Sachin Bansal and Binny Bansal, the two said that while they are excited about their 22 million registered users, India’s 243 million Internet users represent a large opportunity for the company to grow. They also said that their focus on mobile puts them in good position to capture users from the more than half a billion estimated mobile Internet users in India by 2020.
“This new funding will enable us to step up our investments for innovations in products and technologies, setting us up to become the mobile e-commerce company of the future. This funding will help us further accelerate momentum and build our presence to become a technology powerhouse.”
The latest round of funding was co-led by existing investors Tiger Global Management and Naspers with contribution from other existing investors including Morgan Stanley Investment Management and Accel Partners.