The eCommerce War Gains Momentum with Flipkart closing Rs 4,500 Cr Fund

flipkart

eCommerce is not just about selling merchandise. It is also about garnering the customer’s attention. Roping in investments at a regular interval can always do that for you along with keeping you ahead of your competitors.

We have been witnessing the eCommerce war for a good period of time now. Flipkart, Amazon and Myntra being the prime participants. All the parties have been trying to gain an upper hand over another across various platforms. Be it digital, print or outdoor. Ambush Marketing has taken a Centre stage amidst the eCommerce war. However, looking at the recent developments, it is far bigger than that. Flipkart has closed a funding round of Rs 4,500 crore at a valuation of $15 billion. This is the first time that Flipkart has entered the market to rope in capital this year. The development is surely poised to take the eCommerce war to a whole new level. Catering to this development, the 8.5 percent holdings each of Sachin Bansal and Binny Bansal has now rocketed to more than $1 billion. New York based firm Tiger Global and Steadview Capital were amongst the participants in the fund raising round.

With other online players like Snapdeal and Paytm looking to bite their share of the eCommerce and payment market, this can be deemed as an aggressive foot forward by Flipkart in terms of maintaining a stronghold in the market. The investment can be used to top-notch their logistics and delivery engine along with other chunks being invested in marketing and advertising purposes. Since its inception in 2007, Flipkart has raised more than US$3 billion from the global investors.  In terms of bringing new innovations in the market, Flipkart has been second to none. With the introduction of same day delivery, standardization of courier services, leveraging social media to create hype and  exclusive tie-ups, the company has made a fortune and changed the face of eCommerce industry in India forever. In related reports, Amazon is also said to be readying a US$5 billion injection to place India as their largest market outside the United States. Amazon has always maintained that they believe that India has a huge potential and they have been charting a plan to tap the potential.

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