BANGALORE, January 16, 2014 /PRNewswire/ --
Flipkart Co-founder Sachin Bansal Clears Air on IPO Launch in Exclusive Interview
In a SenseXclusive interview with WallStAnalyst.com's Sanjay Pandey, Flipkart Co-founder Mr. Sachin Bansal justifies investing in the future growth of company as opposed to becoming profitable. Additionally, he touches upon the company's IPO plans and its imminent shift to m-commerce platform.
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More than 1,200 e-commerce companies have opened shop in India since 2009. While many have died out due to lack of fund, several are desperately looking for buyers. "I know it is a tough environment. It is easier to start an e-commerce company as the initial investment required is less thanany other traditional businesses. But the phenomenon that we are seeing in India is no different from what we've seen in the internet space globally," stated Mr. Bansal
So how did Flipkart manage to get funds as a startup? Most startups have no problem in getting the seed funding, but investors lose interest in them by the time they get to the second round of funding. According to the co-founder, they also struggled initially as it was difficult to attract investors as a startup.
Flipkart has been burning cash since its inception in 2007. In FY13, the company reported a loss of Rs. 281.70 cr ($3.9 million). Clearing air on whether the company would grow cash positive anytime soon, he stated they could become profitable in the next quarter, if they wish to do so; but that would slowdown its investments' pace into infrastructure and technology. In 2012, the size of the market was estimated at $1.2 billion with a projected growth of up to $50 billion by 2020. "If that happens, then it will be actually stupid of us to stop investing. We are betting on growth more than profitability."
Mr. Bansal says he will love to take the company public, but that is not happening anytime soon. "Right now, we are well capitalised so going public for raising funds won't make sense."
Known for his penchant for investing in future growth story, the young pioneer firmly believes e-commerce will evolve further. The transition has already started with many e-commerce companies transforming themselves to m-commerce firms. "At Flipkart, we are moving from an ecommerce company to an m-commerce platform. Will that be the only shift that we have to make in the coming years? I think there has to be multiple iterations."
Click the link below to read the full interview:
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Primary Media Contact: Rajiv Singh, [email protected], 91-80-41514679
Secondary Media Contact: Sanjay Pandey, [email protected], 91-80-41514679
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