Online retailer - Flipkart Online Services has raised $150 Mn investment led by Naspers and by existing investor Tiger Global, according to IndiaDigitalReview.

The company which has 4,800 employees and services 50,000 orders a day was recently planning to raise funds. This January it raised $150 Mn from existing investors – Accel Partners and Tiger Global Management in its fourth round of funding.

Flipkart has put a R300 minimum order cap for the free delivery option, to cut down its losses. The company emphasizes more on customer acquisition which lead to a gross margin loss per unit sale.

At a time when discount margins from publishers and distributors are shrinking due to the global economic slowdown, in addition to the increasing warehousing cost, Flipkart is finding it difficult to pass on deep rebates to its consumers.

Recently, Flipkart acquired Letsbuy.com, an online retailer specialising in electronics, both the sites had common investors -- Accel Partners and Tiger Global Management. The struggling Letsbuy.com has now shut shop and its traffic has been diverted to Flipkart.

Flipkart, which started as an online retailer of books in 2007, has slowly diversified into mobiles, cameras, movies and music CD/DVDs and electronic goods.

To read more on Flipkart.

Nasper is a South African is a multinational media company with principal operations in in internet platforms (focussing on commerce, communities, content, communication and games), pay-television and the provision of related technologies and print media (including publishing, distribution and printing of magazines, newspapers and books).

Naspers through its Indian entity MIH India has an active presence in the e-commerce space through internet assets such as ibibo Games (social games), Goibibo.com (travel), Tradus.in (shopping marketplace), Payu.in (payments) and Gaadi.com (auto classifieds).

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