Founded in 2007 by two former Amazon employees, the company is hugely popular for selling books and electronics online.
It has 22 million registered users and handles over 150,000 shipments a day.
Earlier this year, Flipkart acquired fashion portal Myntra and exceeded $1bn in annual sales.
India's e-commerce market was worth $13bn in 2013, with online travel accounting for more than 70% of transactions.
According to research firm Forrester, online sales of retail goods were worth $1.6bn last year, but with the growing reach of internet in the country and more people shopping online, it is expected to reach $76bn by 2021, according to consulting firm Technopak.
Correspondents say Flipkart is competing for a bigger slice of the Indian online retail market with the Delhi-based marketplace Snapdeal, fashion e-tailer Jabong, and global e-commerce sites like Amazon and eBay.
In the last seven years, Flipkart had raised $760m and the recent funding is the largest for the company.

The 6ft 4in player, who finished top scorer in last season's Europa League, has signed a four-year contract.
Kozak, 24, has represented his country four times and becomes Villa's seventh signing of the summer.
"He'll add greatly to what we've got," said Aston Villa manager Paul Lambert. "He has an unbelievable scoring record in the Europa League."
Kozak scored eight times in European football's second-tier knockout competition last season.
Lambert says his arrival will ease the pressure on fellow striker Christian Benteke, who has scored 22 times in 37 Premier League appearances since arriving from Belgian side Genk a year ago.
"We need somebody like him as we only have Christian Benteke really as a main target man," added Lambert.
Midfielder Stephen Ireland, 27, has joined Stoke City on loan for the rest of the season while Barry Bannan has signed for Crystal Palace on a three-year deal.
Villa manager Paul Lambert has already added to his attacking options this summer, with the signing of striker Nicklas Helenius from Aalborg.

The 39-year-old, who won silver in Beijing in 2008, sustained a back injury in training.
She left with a parting shot over her treatment as a cyclist.
Houvenaghel will return to dentistry, where "as a woman in my thirties, I will be treated as an equal".
Media playback is not supported on this device
She criticised Great Britain team-mates and coach Shane Sutton when she was left out of the team pursuit races at the London Olympics two years ago.
"The past decade of my life has been dedicated to professional cycling and it has, for the most part, been extremely rewarding," she said.
"I have always dedicated myself 100% to my role as a natural professional sports person and I am immensely proud of my consistently high achievements from the beginning."
The County Londonderry native secured the Olympic silver for GB in the individual pursuit in Beijing and also won team pursuit golds at the World Championships in 2008, 2009 and 2011.
Cornwall-based Houvenaghel represented England in the 2006 Commonwealth Games before winning silver for Northern Ireland in Delhi four years later.
Houvenaghel had targeted a final podium appearance in Glasgow before ending her track career, but has been forced to withdraw citing an injury suffered in training.
"It is never easy to make the final decision to end one's sporting career," she added.
"It is disappointing to have to withdraw from competition at the Commonwealth Games. However, I would like to wish my Northern Irish team-mates every success with their performances in Glasgow.
"In the future, I hope to put something back into the sport but for now I am looking forward to pursuing my career in dentistry."
Responding to Houvenaghel's comments about sexism in cycling, former Team GB track cyclist Victoria Pendleton agreed women do receive different treatment.
The Olympic gold medallist and former world champion told BBC Radio 5 live: "The world of sport, like it or not, it still is very much a male-dominated arena to work in and it is tough at times."
Pendleton, who retired after the 2012 Olympics at the age of 31, added: "I definitely felt in my career that sometimes I wasn't necessarily as well catered for as a female, and I had to act more like a man.
"I can probably understand that she could have done with a little bit of a different support maybe."
India's largest e-commerce company Flipkart has raised $1bn (£590m; 60bn rupees) in fresh funding, the largest ever for an Indian internet firm.
[NEXT_CONCEPT]
Aston Villa have signed Czech Republic striker Libor Kozak from Lazio in a deal worth about £7m.
[NEXT_CONCEPT]
Olympic medallist Wendy Houvenaghel has announced her retirement from cycling after pulling out of the Northern Ireland team for the Commonwealth Games in Glasgow because of injury.