Flipkart.com raises US $20 Million from existing investor Tiger Global
Flipkart.com raises US $20 Million from existing investor Tiger Global. We at YourStory.in congratulate the entire team at Flipkart!
- Funds will be used for building more capacity in supply chain, upgrading technology capabilities and expanding marketing initiatives.
- The funding takes the total investments in Flipkart close to US $31 Million.
- Flipkart is India’s largest online bookstore and its recent forays include Electronics, Mobile Phones and CDs/DVDs of music, movies, games and software.
Flipkart, India’s leading e-commerce destination, today announced the Series C funding of US $20 million from existing investor Tiger Global. The funding, raised earlier this year from Tiger Global, will be used by Flipkart for building more capacity in supply chain and logistics, upgrading technology capabilities and expanding marketing initiatives. This funding takes the total investment in Flipkart close to US $31 million.
Sachin Bansal, Chief Executive Officer, Flipkart said, “We at Flipkart have always focused on providing the best shopping experience to our customers. With consumers increasingly shifting their purchase online, it is imperative for us to expand our presence and take it to the next level. These funds will enable us to build more capacity in our supply chain so that we can shrink customer delivery timelines while expanding our product base. Secondly, this will enable us to consistently upgrade our technology backbone since technology is the biggest enabler and a huge differentiator in the e-commerce segment. With internet savvy customers increasingly becoming accustomed to the ease of online shopping, we plan to invest in our marketing initiatives to build a customer base spanning the length and breadth of the country.”
According to Binny Bansal, Chief Operating Officer, Flipkart, “E-commerce has already crossed the tipping point* in the country and we are witnessing huge growth in the industry. Having already established ourselves as leading players, we expect to pick up a large share of the growing e-commerce pie. Investments in supply chain and technology will help us stay ahead of competition and achieve our goal of becoming the largest e-commerce player in the country.”
Flipkart began operations in 2007 with books and soon went on to become the largest online book retailer in the country. Subsequently in 2010, Flipkart forayed into new categories like CDs/DVDs of music, movies, games and software, Mobile Phones and Electronics, to enhance its products offerings to customers. With all these categories, some of them that have historically not done well online, Flipkart has seen success in a short span of time. The company also plans to foray into new product lines in electronics and consumer goods segments in the near future.
According to the report 'E-commerce Market in India', published by IAMAI (Internet and Mobile Association of India), the internet commerce industry in India is estimated to grow by 47 per cent and reach Rs 46,520 crore mark by the end of 2011. Also, E-Tailing, which includes purchases of consumer items like electronics, mobile phones, computer peripherals, home appliances, as well as personal care items like apparels, jewelry, and toys will contribute about 6 per cent (Rs 2,700 crore by the end of 2011) to the overall e-commerce market. Other independent reports also cite that with rising internet penetration in the country through broadband and mobile phones, the e-tailing market is expected to grow at the rate of 30 percent year-on-year.
With over 10 million titles (books) available and currently speeding along at the rate of 4 books sold every minute, Bangalore based Flipkart.com is the largest online book store in India. The company was started in 2007 by former classmates at IIT Delhi and later colleagues at Amazon.com, Sachin Bansal and Binny Bansal. Flipkart started with books and have, in just over three years, spread across the country, with registered buyers in every city and small town. Going by the aim to retail more than just books, Flipkart has introduced new product categories, namely, Movies, Music, Games, Mobiles and Electronics and will soon be venturing into other categories as well.
They also introduced the ‘Cash on Delivery’ option, making it possible for anyone across the country with internet access to shop online. Regarded a pioneer in the e-commerce space in the country, the Flipkart experience is characterized by the intuitive user interface, free shipping and low prices. As a testimony to the superior customer experience, the company has consistently recorded repeat purchase rates of more than 70%. Currently, Flipkart has registered sales of nearly 2 million items across all categories. Flipkart has a team of around 1500 members and operates from offices in Bangalore, Mumbai, Delhi, Chennai and Kolkata. Please visit http://www.flipkart.com to know more.