The latest funding round has been led by Russian technology-focused investment firm DST Global. Also, Tiger Global, Naspers, and Iconiq Capital pumped in more money into the retailer
New Delhi : Days after closing the biggest acquisition deal in the Indian e-commerce space, online marketplace giant Flipkart said it has raised USD 210 million in a fresh round of funding, bringing private equity firm DST Global on board as an investor.
Technology-focused DST Global, founded by Russian Internet tycoon Yuri Milner and best known for USD 200 million investment in Facebook, will lead this round of funding besides existing investors, Tiger Global, Naspers and Iconiq Capital.
“DST is known for its investment in technology-focused firms and they have a great set of companies that they have invested in. This round of funding is more for the association than just raising funds,” Flipkart co-founder and CEO Sachin Bansal told reporters on a concall.
On using the funds, Bansal said Flipkart is looking at strengthening its technology and acquiring firms across areas like e-commerce, technology and supply chain.
“We have the cash on books. We will look to strengthen our (tech) platform. We could look at e-commerce, tech firms, supply chain companies. Other adjacent areas like payment can also be tapped,” he said, adding that Flipkart could also look at acquiring start ups.
Analysts say that the move signifies growing thrust in the Indian e-commerce space towards consolidation with big online firms eyeing small start-ups and firms to expand their presence, reach as well as add specific categories to their portfolio.
While Bansal declined to comment on the total funding raised till date and the shareholding pattern, it is estimated that the firm has raised over USD 700 million from investors, including the present transaction.
The homegrown e-retailer acquired online fashion retailer Myntra last week in what is estimated to be a Rs 2,000-crore deal.
Flipkart’s moves are being seen as efforts to protect its turf in the USD 3 billion Indian e-commerce market that is witnessing aggressive competition from global giant Amazon and peers like Snapdeal.
As more people log on to the Internet to shop, it is estimated to expand over 7-fold to USD 22 billion by 2018.