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What? Flipkart Raises a Eye-Popping $1 Billion In New Funding Round

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Flipkart-Funding-1billion

The Flipkart Funding juggernaut keeps on rolling and it is setting benchmarks, not only in India, but probably across the world. According to an ET report that cites 2 people, Flipkart may have raised over $ 1 Billion in funding from new and existing investors.

If the reports are true, this is by far the largest funding achieved by an Indian E-Commerce company and probably one of the biggest across the world.

Half of the funding will come from their existing investors Tiger Global, DST Global and Accel Partners, while the rest will be put in by several new investors.

This significant amount of funding will not only consolidate Flipkart’s position in the country, but will now have a war-chest that will put them in a very strong position in comparison to other large players including Amazon Marketplace and eBay backed Snapdeal.

The details as to where Flipkart will use this funding is still unclear, however, it is quite obvious that they will make every investment needed to maintain their top position in red-hot Indian eCommerce market.

This will be Flipkart’s 8th  round of funding. Till date Flipkart has managed to raise a total of USD 1.751 billion funding.

Flipkart’s 8 rounds of funding

Round Who Funded Date Amount
First Round Accel India 2009 USD 1 Million
Second Round Tiger Global 2010 USD 10 Million
Third Round Tiger Global June 2011 USD 20 Million
Fourth Round Naspers / ICONIQ Capital August 2012 USD 150 Million
Fifth Round Naspers, Accel Partners, Tiger Global, and ICONIQ Capital July 2013 USD 200 Million
Sixth Round Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital, Tiger Global Oct 2013 USD 160 Million
Seventh Round DST Global May 2014 USD 210 Million
Eighth Round Tiger Global, DST Global, Accel Partners (plus other new investors) July 2014 USD 1000 Million
Total USD 1751 Million

There is no doubt that Indian eCommerce market is growing at break-neck speed, however, the kind of fund raising Flipkart is able to raise clearly shows that they are going from strength to strength. In march of this year company crossed $1 Billion in sales run-rate and from various developments that have happened in past few months, that number could even have doubled by now!

Some of the Flipkart initiatives in 2014:

  1. Exclusive Launch of Moto G, Moto E and Moto X phones – Sold over 10 lakh phones in 5 months

Side Note: We really hope that with such kind of fund-raising they put an end to issues that their site faces during product launches. Yesterday’s Xiaomi’s Mi3 launch had brought their servers down, and they should have been ready for it!

  1. […] am sure by now you understand why these big ecommerce stores needs billions of dollars in funding and still they are not making any profit till date […]

  2. […] the online retailing giant had raised $210 million at a valuation of $ 3 billion which was later followed by raising $1 billion at the valuation of $7 billion. After its second round of fund raising, the unlisted company owned by Sachin and Binny Bansal had […]

  3. […] which is sitting on a war-chest of $1 billion+ funding from venture capitalists must have taken this big bet of leasing 3 million square feet of office […]

  4. […] is planning to raise 650 million dollars by the end of this year. The present year saw Flipkart raise $1 billion in July followed by Bezos confirming to invest twice as much as Flipkart’s and looks like Tata backed […]

  5. […] third quarter of 2014 also saw some big VC deals – the biggest of them all being the eye-popping billion dollar fund raise by Flipkart in […]

  6. Anil Kumar says

    Flipkart might well have competiton from WalMart and others, it’s right time to hit the nail and gain that deal. I think, FK is not yet profitable?

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