Tags: Flipkart Raises 1 Billion to Go Up Against Amazon in India

Flipkart Raises $1 Billion to Go Against Amazon in India

By    |   Wednesday, 30 Jul 2014 11:22 AM

Flipkart, an online retailer in India founded by two former Amazon employees, has raised $1 billion as it prepares to go head-to-head with Amazon which also announced a $2 billion investment in the country.

The Associated Press reported that Flipkart, started up by Sachin Bansal and Binny Bansal in 2007, is hoping that investments from Singapore's sovereign wealth fund, GIC, along with existing investors Accel Partners, DST Blobal and Morgan Stanley Investment Management will be enough to compete against Amazon.

The company told the AP that the big fundraising effort will go to pay for expansion, with a focus on mobile technology, with hopes of making it a "technology powerhouse."

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Amazon released a statement on Wednesday saying that it will invest its $2 billion "to support its rapid growth" in India. The online giant said in its statement that after opening its marketplace in India, it has become the country's largest store "with over 17 million products from a continually growing base of small and medium-sized businesses, serving millions of customers across India."

Amazon chief executive officer Jeff Bezos said the company's growth in India has surpassed his expectations.

"We see huge potential in the Indian economy and for the growth of e-commerce in India," said Bezos. "With this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India. At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales. A big 'thank you' to our customers in India – we've never seen anything like this."

Flipkart claims it has 22 million registered users and delivers 5 million shipments per month. The company recently bought out online fashion retailer Myntra, also based in India, with hopes to improve its market share against Amazon, noted The AP.

The Wall Street Journal reported that since India does not allow foreign direct investments in multi-brand retail companies, Amazon allows Indian merchants to use the company's website, facilities and logistic network to sell and deliver its products.


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Flipkart, an online retailer in India founded by two former Amazon employees, has raised $1 billion as it prepares to go head-to-head with Amazon which also announced a $2 billion investment in the country.
Flipkart Raises 1 Billion to Go Up Against Amazon in India
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2014-22-30
Wednesday, 30 Jul 2014 11:22 AM
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