Flipkart set to close another funding round of 550 mn dollars

Marketplace model Flipkart is racing ahead of rivals. The company is said to be finalising a funding deal worth 550 million dollars (Rs 3,500 crores) at a valuation of nearly 16 billion dollars (over Rs 1,02,000 crores).

Buzz is that Tiger Global, the largest investor in India's top online marketplace, is leading the round with 100 million dollars (over Rs 630 crores) along with Qatar Investment Authority, DST Global, GIC, Naspers, Accel Partners and Steadview Capital. The company is expected to utilize the amount to stranthen technology and its logistics network.

Indian online retailers such as Flipkart and Snapdeal will need to collectively raise another 20 billion dollars (Rs 1.27 lakh crore) over the next five years to be able to sustain growth, Goldman Sachs said in a report. After investing in establishing their technology platforms, logistics, supply chain, and talent acquisition, leading ecommerce players are now focusing on turning profitable. To begin with, they have brought down the discounts offered and now players like Flipkart and Amazon have started levying delivery charges on certain products, irrespective of the price.