Leading e-retailer Flipkart is hopeful of becoming profitable in the next 2-3 years and expecting to launch its IPO in 2-5 years, co-founder Binny Bansal said today.
“We expect to get in profitable zone in next 2-3 years,” Flipkart co-founder and COO Binny Bansal told reporters here.
Driven by increasing Internet population and growing preference for online shopping, eCommerce companies have witnessed a huge jump in sales.
Investors have also pumped in millions of dollars to build the infrastructure and grow the ecosystem. While the number of transactions and sales through such platforms have zoomed, industry experts have also criticised the huge discounts offered and expressed concerns of inflated valuations.
Flipkart, itself, has raised closed USD 2 billion from investors like Tiger Global, Naspers and GIC, Singapore’s sovereign wealth fund. The company is valued at over USD 10 billion currently.
Most eCommerce companies are operating at a loss because of the heavy investments being made to build the back-end and delivery infrastructure. Since these companies are privately held, they do not disclose their financial results.
Flipkart has 45 million registered users clocking 10 million daily visits and delivers about eight million shipments per month.
Replying to a query about IPO and its timing, Bansal said: “…Yes there is lot of talk of IPO in Press. I don’t think the company ever talks about IPO. Obviously, there will be going to be an IPO”.
“I think IPO will happen probably in next 2-5 years… It depends on lot of factors… I will be guessing up when it is going to happen,” Bansal said adding that since the company is backed by venture capitalists, IPO will happen.