E-commerce giant Flipkart has secured $150 million in series D funding from new investors such as MIH part of Naspers Group and Iconiq Capital, as well as from existing ones- Tiger Global and Accel Partners, reports The Times of India.
Existing investor Tiger Global is still the largest shareholder in the five year-old e-commerce company. The South African media company Nasper, through its Indian arm MIH India, led the investment round when it committed US$90 million and, by doing so, it has joined the company board thereby becoming its second-largest shareholder after Tiger Global.
The deal is expected to secure the company's finances for next three years. The company plans to utilise the funds in expanding supply chain capacities, launching new categories and strengthening its workforce to continue building its leadership position, the company said in a statement.
Sachin Bansal, Co-founder and CEO of Flipkart.com, said in a statement, “We are excited to complete this round of funding, which would fuel our growth plans and help us achieve our stated ambition of hitting $1 billion in gross merchandise value by 2015.”
With the amount raised, this values the e-commerce company's value at around US$800 million and it will no longer be dependent on conducting an overseas initial public offering (IPO) to raise funds and continue operations.
Flipkart, which has a user base of 4.5 million, currently has 4,800 employees. The online retail major raised an undisclosed amount of funding late last year from its existing investors, Accel Partners and Tiger Global.
With the latest round, Flipkart has arguably become the most heavily funded e-commerce firm in the country, ahead of Snapdeal (raised $53 million in three rounds), Fashionandyou (raised $48 million in two rounds) and Myntra ($39 million), according to TechCircle.
In June this year, the e-commerce giant touched a new milestone and clocked Rs 100 crore in gross merchandise value shipped in a month for the first time.
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