Flipkart expects profit in 2-3 years; eyes IPO

0
295

E-commerce major Flipkart expects to start earning profits in three years and wants to launch its IPO between 2015 and 2020, the company’s co-founder Binny Bansal told reporters in Hyderabad.

E-commerce companies have witnessed a huge jump in sales on the back of increasing Internet population and growing preference for online shopping.

Backed by venture capitalists, Flipkart has raised closed $ 2 billion from investors like Tiger Global, Naspers and GIC, Singapore’s sovereign wealth fund. The company is valued at over $ 10 billion currently. But most e-commerce companies are operating at a loss because of the heavy investments being made to build the back-end and delivery infrastructure.

Flipkart has 45 million registered users clocking 10 million daily visits and delivers about eight million shipments per month.

Asked about a likely date for an IPO launch, Bansal said, “I think IPO will happen probably in next 2-5 years… It depends on lot of factors… I will be guessing up when it is going to happen.”

Source: Free Textile and Fashion Industry News RSS XML Feeds – Fibre2fashion

LEAVE A REPLY