1. After Flipkart secures $1.4 bn funding, Binny Bansal in letter warns staff to keep tight leash on costs; says online retail potential is $100 bn

After Flipkart secures $1.4 bn funding, Binny Bansal in letter warns staff to keep tight leash on costs; says online retail potential is $100 bn

Home grown e-commerce major Flipkart on Monday cautioned its employees about keeping a close watch on its cost structure even as it aspires to garner a larger marketshare of the fast growing online retail market in India.

By: | Bengaluru | Published: April 11, 2017 5:50 AM
Flipkart The eBay business will come under the direct control of Kalyan Krishnamurthy, who heads the entire online business of Flipkart. (IE)

Home grown e-commerce major Flipkart on Monday cautioned its employees about keeping a close watch on its cost structure even as it aspires to garner a larger marketshare of the fast growing online retail market in India. Soon after securing its latest funding round of $1.4 billion, in an e-mail to employees, Flipkart Group CEO Binny Bansal said, “While this funding round provides the fuel we need to reach that goal, we have to continue growing our business with careful considerations to costs. The potential is vast and we have only just scratched the surface. E-commerce accounts for less than 2% of all retail in India and the potential for online retail alone is about $100 billion,” Bansal said, in the mail reviewed by FE.

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Talking about its new investors Microsoft, Tencent and eBay, Bansal said, “These partnerships brings in a lot more than funds. They set up to compete more aggressively through innovations. We can now collaborate deeply with eBay on cross border trade and ensure our customers have a wider selection of international product to choose from.” According to mail, the eBay business will come under the direct control of Kalyan Krishnamurthy, who heads the entire online business of Flipkart. On the funding, Bansal said it provides them with solid growth capital to extend its lead in the India’s e-commerce market.

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