Flipkart Raises Another $160M For Its Amazon-Style Indian E-Commerce Marketplace

Flipkart, India’s largest e-commerce marketplace that’s often referred to as the “Amazon of India,” has raised another $160 million. This is an extension of the $200 million raise announced in July of this year, with the final $360 million Series E round the largest ever to be raised by an Internet startup in India. It brings the total raised by Flipkart since 2007 to $540 billion.

The extra capital will give Flipkart the ammunition it needs to compete against the likes of eBay-backed Snapdeal — not specifically by building out into new product areas and tapping new customers, but by investing in improving what is already there. Funds will go to improving technology and supply chain, hiring and to “further enhance the end-user experience,” according to a statement from Flipkart. The company says it has some 10 million customers and 1 million uniques per day. Among the 17+ product categories that it covers, newer additions include clothes, footwear, toys, furnishings and ebooks, adding to a legacy business strong on electronics, books and home goods.

Flipkart doesn’t specify exactly what sorts of new services may get included in this round but a recent launch of PayZippy, a payment processing service not unlike PayPal, could be one area of investment. As in other developing countries, India has a strong offline payment system, where people pay for goods bought online only when they get delivered. PayZippy is Flipkart’s bid to try to change that.

This round adds several new investors to Flipkart’s balance sheet: Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital are all coming in on this round, also with participation from existing investors Tiger Global, whose first publicly disclosed investment in the company was in 2011 for $20 million. Other Flipkart investors include Accel Partners and ICONIQ Capital.

The news today was first announced by Flipkart’s CEO, Sachin Bansal, confirming rumors that had been swirling already:

Flipkart then followed that up with a statement with more details about new investors.

The investment comes at an interesting point in India’s e-commerce landscape. Like other BRIC countries, India and its population of 1.24 billion people are coming a bit later to the e-commerce market than countries like the U.S. or those in Western Europe, but this also means less saturation and more opportunity. At the same time, there is a growing middle class, bolstered by improved data networks and affordable devices — smartphones, tablets and, yes, PCs — to use on them (many sold via Flipkart ). Those consumers are switched on and taking to the internet by storm to buy goods and services.

That’s having a double effect in terms of business: the rapid rise of strong domestic players like Flipkart, and more interest from foreign investors and e-commerce businesses. Earlier this year, Snapdeal — probably Flipkart’s biggest competitor online — picked up a $50 million investment from eBay, and we understand that this was after a bidding war that also included Amazon.

“We are excited to work with a group of investors who strongly believe in our business strategy and are completely aligned with our long-term goals,” Bansal noted in that statement from Flipkart. “India’s e-commerce market is at a critical inflection point and this additional capital will allow us to further expand our leadership position.”

We’re speaking to Flipkart soon and will update this as we learn more.