Looks like the enthusiasm of Sachin Bansal is shared by Accel Partners & Tiger Global Management, who have pledged US$ 150 Million to the company. This fourth round of funding takes the Valuation of Flipkart to a whopping figure of US$ 850 Million. Flipkart which initially started its operations with focus on books has diversified into myriad forms of products & services. Given the entry of Amazon via the e-commerce route, Flipkart seems to be in expansion overdrive & is expected to establish its foot-print in Tier II & Tier III cities & towns.
E -commerce is growing rapidly & Internet is being adopted at a higher pace in such smaller towns. Thus, Flipkart’s strategy to cater to such audiences seems appropriate. The only hurdles that we see are that of logistics & distribution. However, companies, when going for expansion, first take care of such high priority problems. With the aim of cutting down of delivery time from the average 5-7 days to 3-4 is not an easy task, but it is the first thing that the companies should focus on.
Though, Flipkart has not divulged its roll-out plans, we believe it is in talks with distribution centers across the country.
Oddly, with sudden growth of online deals sites, people seem to be getting bored, but still prefer to buy online!. Hence, Flipkart should also focus on creative advertising. However, with Flipkart’s latest acquisition across the board, it is in good shape to beat the odds & thrive even if one section falters. Carlyle and General Atlantic had been thinking of investing, but the deal did not materialize owing to difference in valuation of this successful company. Guess, now they will reconsider?
Have you bought anything from Flipkart lately? How was your experience?