Flipkart raises $1 billion from venture funds

India's largest e-commerce market player Flipkart Tuesday announced raising a whopping $1 billion (Rs.6,015 crore) in fresh capital from global venture funds.

"We will use the fresh funds for long-term strategic investments in the country, especially in mobile technology," the city-based company said in a statement here.

The latest round of funding was co-led by the company's investors Tiger Global Management and Naspers.

Singapore's sovereign wealth fund GIC participated in the financing round along with existing venture partners Accel, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina.

"We believe internet will improve the quality of life for millions of Indians and e-commerce will play a huge role in this change," Flipkart founder Sachin Bansal said on the occasion.

The new fund-raising came within months after the company touched $1 billion in gross merchandise volume.

"We will continue to make shopping online simpler and more accessible through technology," co-founder Binny Bansal said.

Flipkart says its focus is to continue to make shopping online simpler and more accessible through the use of technology.

With 22 million users, the firm handles five million shipments a month.

"As the number of internet users across the country rapidly increases from 243 million currently, we want to enable every citizen to shop or sell online, in which mobile platform will accelerate the growth," Sachin Bansal observed.

With the country projecting to have about 500 million internet users by 2020, the company plans to take advantage of the unfolding opportunity by focusing on mobile technology.

"The fresh funding will enable us to invest in new products and accelerate the momentum to become a technology powerhouse," the co-founder noted.

The seven-year-old company offers over 15 million products across 70 categories, including books, media, consumer electronics and lifestyle.