Ekart gets Rs 1,632 crore funding from Klick2Shop

Indian e-commerce major Flipkart's logistics entity Ekart has got a major boost with a funding of Rs 1,632 crore (approx $257 million) from Klick2Shop.
 
Flipkart

The funds will be used by Ekart to scale up its logistics unit to ensure faster deliveries across the country for Flipkart and its subsidiaries.
 
In order to maintain its lead in the e-commerce market Flipkart has been investing heavily to boost its infrastructure, technology and logistics network. Flipkart is looking to compete with Amazon Prime which offers one day deliver by boosting Ekart, which currently fulfils approximately 80 percent of the company’s logistical needs in the country.
 
Ekart received a funding of Rs 1,632 crore (approx $257 million) in November in three tranches from Klick2Shop Logistics Services International, according to documents filed with the Corporate Affairs Ministry.
 
Klick2Shop (a company registered in Singapore) had infused Rs 324 crore (approx $51.1 million) early November followed by two additional funding rounds of Rs 982 crore (approx $154 million) and Rs 327 crore (approx $51.5 million), the documents showed.
 
"The equity shares allotted to Klick2Shop Logistics Services International shall rank pari-passu with existing equity shares of the company as to dividend voting or otherwise," the filing read.
 
Flipkart had bought its logistics arm Ekart in 2015 from WS Retail Services, the largest retailer on its platform. It currently delivers 10 million shipments a month to over 3,800 pin codes across the country.
 
Ekart was acquired by Flipkart from WS Retail Services, a major seller on Flipkart's platform, in 2015.

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