FlipKart Raises 10 Million $ From Tiger Global – Expands Beyond Books

Flipkart the online books retail portal recently forayed beyond books by adding CDs & DVDs of Movies, Music and Games to its offering. This expansion comes at a time when VCCircle reports a funding of 10 million dollars for Flipkart. The funding confirmation apparently took place a few months back. The investor is Tiger Global Management which is a New York-based investment firm. Flipkart raised its first round of funding from early venture capital firm Accel India.

Besides for games its also software dvds that seems to be on Flipkart’s radar. Flipkart’s immediate plans include starting sales of software like Norton Anti-virus, Adobe, Windows, and others. The worth of this market is pegged at Rs 10 billion in 2008 and is expected to grow to Rs 16 billion by 2013 at an yearly growth rate of 10 to 15% as per this release by Flipkart.

One of the key features that Flipkart recently added was ‘Cash on Delivery’ option which given the low credit card penetration in India makes it one of the most important add ons for their growth strategy. Currently they have over 6 million titles listed  and aims to touch the Rs 100 crore mark by March 2011. With a team of  200 members and operations across Bangalore, Mumbai and Delhi and over 10 million $ in the bank it seems the only way they are headed is towards growth. Challenges that we foresee for them are one of achieving scale as the payment methods and poor logistical infrastructure in India make it a nightmare market. Though the products they currently deal with i.e. book, cds and dvds are non touch and feel products i.e. they don’t require one to see the product in advance to order it.

Flipkart’s immediate plans include starting sales of software like Norton Anti-virus, Adobe, Windows, and others

7 Responses to “FlipKart Raises 10 Million $ From Tiger Global – Expands Beyond Books”

  1. June 16, 2010 at 10:23 am #

    Thanks for the update. Let us wish them good luck..

  2. Curious Mind
    June 18, 2010 at 7:09 pm #

    Come On WatBlog, we expect an in-depth analysis of what this means for e-commerce in India.. is it finally happening.. or is it again a bet by VC-firm to check whether its happening ?? or is their something more to flipkart (apart from the online model.)…

    • June 18, 2010 at 7:22 pm #

      Thanks for asking Curious. This is most definitely a proof of concept for low cost item sale ecommerce + good customer service working in India. Mind you most books on flipkart are below 500 rupees. But my doubts will be cast on the scalability of their model. Yes they have cash on delivery but that may backfire as well. Also given the low card penetration alternate payments like mobile come into focus. I believe flipkart will have to launch a mobile version or an app and partner with app platforms like iphone and ovi to penetrate the mobile market as well to grow in a full fledged large scale digital commerce player in India.

  3. Visitor
    June 20, 2010 at 5:09 pm #

    @Rajiv .. ur analysis of e-commerce is no-brainer.

  4. June 21, 2010 at 1:54 pm #

    Thanks. But then these are the facts. Brainer or no brainer ;)

  5. June 25, 2010 at 12:32 pm #

    hey! wondering who was the ibanker

  6. gyan
    August 30, 2010 at 2:47 pm #

    can anyone recommend any other shop for buying movies based in india.

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