Flipkart the online books retail portal recently forayed beyond books by adding CDs & DVDs of Movies, Music and Games to its offering. This expansion comes at a time when VCCircle reports a funding of 10 million dollars for Flipkart. The funding confirmation apparently took place a few months back. The investor is Tiger Global Management which is a New York-based investment firm. Flipkart raised its first round of funding from early venture capital firm Accel India.
Besides for games its also software dvds that seems to be on Flipkart’s radar. Flipkart’s immediate plans include starting sales of software like Norton Anti-virus, Adobe, Windows, and others. The worth of this market is pegged at Rs 10 billion in 2008 and is expected to grow to Rs 16 billion by 2013 at an yearly growth rate of 10 to 15% as per this release by Flipkart.
One of the key features that Flipkart recently added was ‘Cash on Delivery’ option which given the low credit card penetration in India makes it one of the most important add ons for their growth strategy. Currently they have over 6 million titles listed and aims to touch the Rs 100 crore mark by March 2011. With a team of 200 members and operations across Bangalore, Mumbai and Delhi and over 10 million $ in the bank it seems the only way they are headed is towards growth. Challenges that we foresee for them are one of achieving scale as the payment methods and poor logistical infrastructure in India make it a nightmare market. Though the products they currently deal with i.e. book, cds and dvds are non touch and feel products i.e. they don’t require one to see the product in advance to order it.