In the largest investment in a single tranche for any e-commerce company in India, online retailer Flipkart.com has raised $200 million (Rs 1,200 crore) from a consortium of three existing investors.
The investors include South African technology group Naspers and private equity funds Tiger Global and Accel Partners.
Flipkart plans to use these funds to build and strengthen its technology capabilities and bolster its supply chain.
The fund infusion underlines the fact that after some initial hiccups online retail is now gradually picking up in India.
“The funding should give more hope to all those who believe in the success of e-commerce in general and Flipkart in particular,” said Sachin Bansal, CEO, Flipkart.com.
Flipkart receives 10 lakh visitors every day and sells products across 17 categories ranging from books to electronic items.
India’s e-commerce market, valued at $1 billion (Rs 6,000 crore) in 2012, is expected to touch $76 billion (Rs 4,54,635 crore) by 2021.