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Flipkart parent invests ₹4,843 cr. in India units to take on Amazon

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Online retailer had raised about $4 billion from SoftBank and other investors

Singapore-based holding firm of Indian online retailer Flipkart had invested ₹4,843.4 crore into two of its India entities, in a bid to take on rival Amazon.

Singapore-based Flipkart Limited had put ₹4,472.4 crore into the marketplace unit of Flipkart India, according to a regulatory filing disclosed to the Registrar of Companies (RoC).

Another Singapore-based unit Flipkart Marketplace Private Limited had injected ₹370.9 crore into Flipkart Internet Pvt. Ltd., which owns and operates an online shopping portal in India. These investments, which were received in early February, were recently disclosed to the RoC. The funding is expected to help Flipkart build its war chest in its battle against Amazon.com Inc., which is rapidly gaining share in India’s online retail market. The investment in the India units comes at a time when the company had raised about $4 billion last year in two funding rounds from investors, including Chinese Internet giant Tencent, U.S.-based e-commerce firm eBay, software maker Microsoft and Japan’s SoftBank Group.

Vision Fund

Last August, SoftBank, led by CEO Masayoshi Son, announced an investment in Flipkart through its $100 billion technology-focused fund Vision Fund. Flipkart, which had in excess of $4 billion in cash after that round, is now expanding rapidly in the Indian market.

India’s e-commerce sales is expected to grow at a 30% compounded annual growth rate through FY 2027 and touch $200 billion of gross merchandise value, according to global financial services firm Morgan Stanley.

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Printable version | Jan 24, 2020 10:44:31 AM | https://www.thehindu.com/business/flipkart-parent-invests-4843-cr-in-india-units-to-take-on-amazon/article22920093.ece

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