Growing E-commerce business in india
Flipkart, India’s largest e-commerce player, anounced on Tuesday that it has raised $1 billion and plans to make long-term strategic investments in India, especially they will be venturing into mobile technology. This was one of the biggest funding rounds for any e-commerce company globally. Flipkart is now expected to be valued at $5 billion,around Rs. 30,000 crore, according to some estimates. It has reached 22 million registered users and handles 5 million shipments per month. India has got over 200 million internet users. Flipkart officials addressing the media, said that it wanted to enable every Indian to either shop or sell online. ”We believe that the power of the mobile internet is going to help us achieve this goal,” said Bansal. “By 2020 India will have more than half a billion mobile internet users. Our intense focus on mobile and technology puts us in a unique position to take advantage of this massive opportunity.” Currently, the competition is intense in Indian e-retail market.
Young IITians Sachin Bansal and Binny Bansal started Flipkart in the year 2007 with an investment of four lakh rupees. The company had earlier raised over Rs. 4,200 crore in previous funding rounds. In May this year, Flipkart had raised Rs. 1,260 crore in funding from the investment group DST Global. Besides looking at fresh acquisitions, it could use the fresh funding for expanding its operations. Flipkart also acquired india’s biggest fashion portal Myntra for around Rs. 1,800 crore. “Acquisition will be an important part of our growth strategy,” Binny Bansal told media persons. The competition is hotting up in e-commerce sector with Amazon also expanding its presence in india. The Indian e-commerce market was worth Rs. 78,000 crore back in 2013, with online travel accounting for over 70 per cent of consumer e-commerce transactions. Online sales of retail goods amounted to Rs. 9,600 crore in 2013, according to a leading research firm it is expected to reach Rs. 4.5 lakh crore by the year 2021. The future seems very bright for e-commerce players.