Doha-based Qatar Investment Authority (QIA) has bought a huge stake in the India based ecommerce company, Flipkart. According to media reports, the investment, pegged at USD 150 million, is said to be the third round of fund-raising done by the ecommerce player.
QIA also holds investments in other companies including Tiffany, Barclays, and Credit Suisse, managing USD 300 billion worth of assets.
With the deal closed, Flipkart is now valued at USD 11 billion, following investments from other foreign companies like Singapore based GIC. Reports also states that QIA is the third round of investment raised by the online retailer this year. Previously, it received USD 1 billion investments from other existing investors followed by another USD 210 million.
In totality, Flipkart has accumulated investment of USD 700 million through new investors including Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates along with QIA and its existing investors.
Flipkart plans to utilize these funds towards long-term strategic investments in India and to build a world-class technology company, delivering superior customer experiences.
Other online retailers racing to be the front runners in the fastidiously growing ecommerce market are Amazon and Snapdeal which also increased their marketing budget with each rasing investments of USD 2 billion and USD 627 million in its Indian arm.