Flipkart defers IPO plans, to expand business

Tuesday, 03 September 2013

E-tailing company Flipkart, has put aside its IPO for and plans to focus on business expansion. After raising 200 million dollars (over Rs 1,000 crores) from existing investors, the Bangalore-based company is witnessing a positive growth track and is not worried about profits at least for a next few years.

The platform has also adapted a marketplace-based model, which the company believes would provide larger space, scale and scope to capture a bigger pie of the market. While Flipkart has already started the process to move on to the new business model, it would take about 5-10 years to make it finally work.

However, the company would not totally give up its existing platform since it already has 500 sellers. Going forward, it’s aiming to get one lakh sellers on the site. By the end of fiscal year 2015, Flipkart targets to rope in at least 10,000 sellers. The company would also utilise the recently raised funds to build a good supply chain and logistics infrastructure. And as the marketplace model is becoming successful, the company launched Payzippy.com to resolve payment issues.

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