South African media giant Naspers is said to be investing $150 million (Rs 834 crores) in online retailer Flipkart, a deal which would secure the company’s finances for the next three years.
Nasper and Iconiq Capital are the new investors in Flipkart, with the former pumping in US$90 million, and the money will be used on expanding supply chain capacity and growing its talent pool.
Existing shareholders Tiger Global and Accel Partners continue investing in the latest round of fund raise.
The Naspers-led deal values India’s e-commerce leader at around $800 million (Rs 4,448 crores). MIH India, an arm of Naspers, is investing over $90 million (Rs 500 crores) into the five year-old Flipkart.com becoming the second largest shareholder in the company after Tiger.
Flipkarts sales in the current fiscal will be nearing Rs 2,000 crores with the company targeting maiden operating profit.
“The money raised in this round will be invested in expanding supply chain capacities, launching new categories and in growing the talent pool to continue building on our leadership position,” a statement from Flipkart said.
The funds will be used on expanding the company’s supply chain capacity, launching new product categories, and growing its talent pool to keep it ahead of its competitors, the company stated.
The company had in February announced it bought local rival Letsbuy for an undisclosed sum in order to consolidate its position in the local e-commerce market, worth some US$10 billion, after the entry of Amazon via its new Web site Junglee.com.