To counter its rival Amazon India, Indian e-commerce major Flipkart has infused another $257.3 million into its logistics arm eKart, which is operated by Instakart Services Pvt. Ltd., reports by VC Circle.
According to the Registrar of Companies (RoC) filing, the fund was raised in multiple tranches between October and November last year. In November, it raised $206.20 million, while the remaining $51.56 million was raised in October.
eKart raised this sum by allocating equity shares at Rs 62.51 apiece to its Singapore-based group firm Klick2Shop Logistics International Pvt. Ltd. Notably, Klick2shop is the controlling entity of Instakart and is most likely a subsidiary of Flipkart Pvt. Ltd.
The last time eKart received funds was in September 2017, when Flipkart infused $147 million into the unit.
Founded in 2009, Ekart was acquired by Flipkart from WS Retail Services in 2015. Currently, it has around 600 delivery hubs in India. The company claims to deliver 10 million shipments a month. It works with Flipkart as well as other brands and merchants outside of the Flipkart Group and delivers smartphones, clothes, shoes, TVs and other products to customers to over 3,800 pin codes.
Flipkart now direct battle with Amazon in India, which is too strengthening its logistics power in the country. Besides ecommerce players, there are players like Ecom Express, Locus, Delhivery, Rivigo, Loadshare, Blackbuck, and also NSE-listed Gati etc in this space.
2017 was undoubtedly a good year for the homegrown online retailer. Flipkart set records and raised $ 4 billion from Japan-based venture capital firm SoftBank.
In December, Flipkart also successfully completed the repurchase of employee stock options (ESOPs) worth $ 100 million.