23-11-2012, 05:52 PM
The Curious Case of FLIPKART:-
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Today when I think of buying something, now I don’t require to bother about much. I will just click on Flipkart.com and I will shop. It made the shopping very easy for me.
Flipkart needs about $150 million from new investors in the next six to nine months even as bulge-bracket private equity firms remain wary of the online retailer's initial public offering plans in the US—crucial to making handsome return on investments.
PE giants like Bain Capital and Kohlberg Kravis Roberts could look at potential investment deal but demand clarity on Flipkart's ability to pull off a public issue, said bankers familiar with the matter. Two existing investors Accel Partners and Tiger Global are unlikely to pump more capital after $100 million follow-on investment earlier this year.
Flipkart would be running out of money unless big investors step in the next nine months. The poster boy of India's latest e-commerce wave is limiting cash burn and improving profitability, but that alone won't improve listing prospects.
This financial year, they expect to show investors Rs 2,500 crore in revenues, a 400 percent growth over last year’s numbers. They sell 17,500 items each day—or 6.5 million items annually. Nearly 5,000 people, including contractors, work for them. Their closest competitors make do with 700-800 people.