Poster boy of Indian ecommerce, Flipkart’s Sachin Bansal lists 3 major turning points to success

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New Delhi | Published: February 9, 2017 5:30:58 AM

In the past 10 years Flipkart India has seen it all—rapid investments by foreign investors, stability in funding and valuation markdowns.

Sachin Bansal, Sachin Bansal Flipkart, Sachin Bansal removed as CEO“Investment cycle changes rapidly but reality of the company does not,” Sachin Bansal, co-founder of Flipkart said at the 11th edition of India Digital Summit on Wednesday. (Reuters Photo)

In the past 10 years Flipkart India has seen it all—rapid investments by foreign investors, stability in funding and valuation markdowns.

Investment cycle changes rapidly but reality of the company does not,” Sachin Bansal, co-founder of Flipkart said at the 11th edition of India Digital Summit on Wednesday. According to Bansal, a culture that allows you to make mistakes, strong logistics and category expansion to books to electronics to fashion were the three major turning points for the poster boy of Indian e-commerce industry.

Hitesh Oberoi, MD and CEO of Info Edge India, which listed Naukri in 2006 has seen a different side of funding. “Naukri was listed when it has become a household name in India and it had become easy to raise money and hire more people,” says Oberoi. Naukri is Info Edge’s only profitable business that generates 70% revenues for the company.

In addition to Naukri, Info Edge owns companies across the board—Jeevansathi, 99Acres, Shiksha. To expand its presence in the online food discovery and ordering Info Edge has invested in Zomato, which is present in more than 20 countries.

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Bansal maintained his stance on ‘selective globalisation’ and said that there should be a level playing field for all companies and capital dumping violates that. Oberoi reiterated and said “Capital will only take you this far. Start-ups have to figure out a way to build transparent business.”

Demonetisation in November spoiled the party for Info Edge’s real estate business 99Acres but digital payment companies posted manifold jump in transactions. Bipin Preet Singh, founder and CEO, MobiKwik insisted that the company did not require large investments and was bootstrapped until 2013. “Reception of electronic payments has gone up but growth will take time in a cost sensitive market like India,” he added.

UrbanClap, on-demand service platform too benefitted from the demonetisation drive in the country up to the extent of 20-30% hike in sale of high-ticket services such as beauty, according to Abhiraj Bhal, co-founder of UrbanClap. E-commerce gives the ability to pay online and only more use cases can build a wide network for a payment company.

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