Singapore Sovereign Wealth Invests in Indian E-Commerce Flipkart
Singapore’s GIC Private Limited has joined existing investors Accel Partners, DST Global, Iconiq Capital, Morgan Stanley Investment Management (MSIM) and Sofina to invest a total of US$ 1 billion in Flipkart. This adds to the company’s existing US$ 770 million war chest raised. Flipkart is India’s biggest e-commerce company, competing against another Indian company called Snapdeal. Singapore’s other sovereign wealth fund, Temasek Holdings, invested in Snapdeal. Snapdeal and Flipkart are vying to be called the “Amazon.com of India.”
Flipkart has 22 million registered users and has the potential to grow as 250 million people are online in India. The capital raise reflects institutional investors’ heightened appetite in Indian e-commerce companies. The funds will be used to invest in other companies and make internal strides in mobile technology.
Flipkart co-founders, Sachin Bansal and Binny Bansal, both went to the Indian Institute of Technology (IIT). The founders are not related to each other. Both Bansals worked at Amazon before creating the online bookstore in 2007.
Amazon countered Flipkart after the company announced a capital raise. Amazon is investing US$ 2 billion in its Indian operations – to open up five additional warehouses.
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