Dragoneer Investment, Morgan Stanley, Vulcan, Sofina Capital invest

Online retailer Flipkart has raised $160 million in another round of funding.

This latest round of investments was made by Dragoneer Investment Group, Morgan Stanley Investment Management, Vulcan and Sofina Capital.

India’s largest online retailer, a few months ago, raised $200 million from South Africa-based Naspers Group along with other existing investors such as Tiger Global and Accel Partners.

Sachin Bansal, co-founder and CEO, Flipkart.com, in a statement said the Indian e-commerce market is at a critical inflection point and this additional capital will help it expand further.

An industry analyst values the firm currently in the range of $18-22 billion. The Indian e-commerce segment is seeing at a fast clip and research estimates that around 100 million Indians have access to the Internet and 10 per cent of them transact online, buying anything from luxury goods to mobile phones.

Earlier last week, Matrix Partners India acquired a minority stake in Inasra Technologies Private Ltd, the parent company of Stayzilla.com, which helps consumers book hotels online.

Similarly, companies such as Snapdeal, RedBus, Fashion & You have seen investments Intel Capital, Norwest Venture Partners, RuNet Holdings and others.

It is not only Indian e-commerce players that are making investments in technology, people and other business areas. Last month, e-commerce giant eBay opened a new development centre in Bangalore, its third such centre with plans to hire 1,000 IT professionals by 2016.

Retailer Amazon announced its India foray in August, as consumers are buying more online due to convenience and attractive pricing, according to industry watchers.

venkatesh.ganesh@thehindu.co.in

(This article was published on October 9, 2013)
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