Flipkart attracts money from Belgian Sofina
One billion dollar (750 million euro), that is the record-breaking amount Flipkart has managed to attract, the highest any one internet company has ever gathered in one single attempt. The Indian e-commerce group intends to buy other companies and to grow its personnel base, in an attempt to fight American Amazon. Its current shareholders, like business bank Morgan Stanley and Belgian investment fund Sofina (Family Boël’s listed holding), have given Flipkart the money.
Flipkart, which states it currently handles 5 million packages per month, should now be ready to face the huge surge of Indian online shopping. It is expected that the number of Indian internet consumers will grow from 200 million to 500 million by 2020.
Amazon counters immediately
Amazon, Flipkart’s shining example and competitor, is not going to sit idly by because within a day of Flipkart’s news, Amazon has informed everyone that it will invest another 2 billion dollars into its Indian business. According to CEO Jeff Bezos, the money will be used to support “rapid growth and continue to enhance the customer and seller experience in India. We see huge potential in the Indian economy and for the growth of e-commerce in India.”
Amazon started its Indian activities in June 2013. According to local media, Indian e-commerce has reached a turnover 13 billion dollars (nearly 10 billion euro) in 2013 and it is expected to reach 50 to 70 billion dollars (40 to 50 billion euro) by 2020.
