The leading e-retailer in the country Flipkart has told that the company will be holding a profitable business in another 2 to 3 years and the firm has also told that they are planning to go for IPO in another 2 to 5 years. There was a talk among the e-retailers and the marketers that the flipkart may not be entering into IPO as it just wanted to remain as a pvt ltd concern. Now the announcement has become contradictory with the talks. It is expected that the marketers would show a great interest in the Flipkart IPO as the firm is leading one in the industry.
Binny Bansal has commented on this announcement
Flipkart co founder Mr. Binny Bansal has told that the company is expecting a great profitable business in another 2 to 3 years. India is now increasing in its number of internet users and the priorities for online shopping is also increasing day by day. It is a witness that the e-commerce companies in India have jumped into huge sales in a very short span of time. The investors in these e-commerce businesses have pumped huge money into this and have developed a great infrastructure.
The leader of e-commerce in India, Flipkart itself has raised a fund of $2 billion only from the investors. Some of the investors in the Flipkart are the Singapore Sovereign wealth fund, Naspers and GIC, Tiger global and others. The current value of the company is evaluated to be $10 billion. It is a widely accepted fact that so many e-commerce business now is running at a loss in their business. This is mainly because of the huge investment they have made in building the infrastructure and the delivery systems. Since they are all maintained by the pvt funds, they will not disclose their financial status easily. You May Also read related article regarding IPO
Flipkart makes 8 million shipping per month
The flipkart being the leader in the e-commerce business in India is having 45 million users who have registered themselves with flipkart online shopping site and the company is making about 8 million shipping every month. This is quite higher when compared with other e-commerce firms in the country. Flipkart has got the highest users in the country and also got a reputation that it delivers only quality product to the users. This quality factor is also a major issue behind the loss of many other e-commerce concerns in India. Some e-commerce sites have been marked with an identity of low quality product delivery.
While saying about the IPO, Binny Bansal has told that the company can be expected in the IPO market within 2 to 5 years. He has told that the company entering into IPO is not that easy and it depends on so many factors. He said that he will be guessing up the IPO announcement soon and he has also added that since the company is venture capitalized, the IPO will definitely happen. By this announcement the expectation of the marketers has really increased and many marketers have told that this is an appreciable move by the Flipkart. please follow us at https://twitter.com/financetradingn