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Pune Speak Up: Flipping karts in big biz

Thursday, 31 July 2014 - 10:20am IST | Place: Pune | Agency: dna

Flipkart has raised $1 billion in fresh capital, which is one of the largest funding rounds in e-commerce space globally. There are very few internet companies which have raised that kind of money. dna asks readers if Flipkart is changing the structure of e-commerce ecosystem in India

Will boost vertical players...
Flipkart is changing the structure of e-commerce ecosystem in India and has been doing it constantly for the past 4-5 years. Innovations like 'Cash on Delivery' were the first ones to help build trust in risk-averse Indian consumers mind. They have always done a great execution, and can hopefully keep being the torch bearers of young Indian startups in the coming years. They will utilise these funds to consolidate the market (like the Myntra merger), acquire more young technologies and branch into umbrella businesses like payments etc. This game has always been about winner-takes-all, with no space for a second player. Companies like Snapdeal would seriously be contemplating things. This solid confidence in Flipkart by investors will also give boost to vertical players who are focusing on one category like apparel, furniture etc.
Aditya Rao, Founder, (LocalOye - Marketplace for Event Planning)

It's all about service and comfort...
Online retailers have changed the way we shop. The biggest impact is in terms of demography by age and product line. Flipkarts recent cap raise only validates this impact that confirms that they mean serious business. The buyers attitude is changing from the traditional "look, feel and buy". With so little time in hand, buyers find it convenient to buy stuff online especially when it gives you the option to analyse, compare and buy at the best price. With free home deliveries and free return options, it makes all the sense. If you take a global outlook, almost every retailer with 'brick and mortar' outlets have included the online option too. In the end, its all about service and comfort. As long as you get a good one, the mode of shopping just doesn't matter. The fact of the matter is that the buying ecosystem in India is changing. Flipkart and the others are simply sensing it and making the most of it.
Shivdutt Mhase, Business Manager, IT services

Indians have the will and wisdom..
This is going to be a corner stone for the e-commerce industry in India. Barely 6 years ago, e-commerce was being talked about as an industry that is difficult to scale up in India given the challenges of internet proliferation and low penetration of plastic money. Flipkart has emerged as a role model to a host of startups aiming to be big in the booming online industry. It's also the vetting that Indian entrepreneurs are getting globally. It's an indication that investors do see India as a booming market for consumer linked businesses and do believe that Indian entrepreneurs do have the will and the wisdom to hit it big time.
Ajit Gokhale, Founder & CEO, Mobien Technologies

We want Indian internet companies to prosper...
There are very few internet companies in the world which are worth $100 billion. There are three in the US and one in China. I believe that such a company can be produced from India and we want to be that company. We want to see Indian internet companies prosper. Whether it takes five years, 10 or 15, we want to do whatever possible to achieve this. These funds help us think long term. There are many opportunities out there which will change the ecosystem in India. This funding will let us make big bets on changing the structure of the e-commerce ecosystem in India.
Sachin Bansal, co-founder, Flipkart

Flipkart should be studied and emulated...
With 5 million transactions a month, Flipkart has taken e commerce to a different level. These are guys who had a vision and mission which they pursued relentlessly. Flipkart brought incredible innovation to the market and a real understanding of what makes their customers buy. Through a series of brilliant, memorable adverts, they managed to persuade the very resistant Indian public to buy online, by offering a cash on delivery service. Coupled with great service, which we were not used to, they created and kept their first mover advantage. With a middle class growing, they have great future. I think they are a company that should be studied and their methods emulated.
Vandana Poria, CEO, Get Through Guides and chair, British Business Group.

Flipkart story
$1 billion - fundraising deal announced
$5 billion - present worth
$100 billion - aspiring to become
2007- established

Clicks getting bigger
22 million registered users
5 million shipments a month
9% share of the India's Rs 17,000cr r-retailing market
5% share of revenues from mobile, five months back
50% share currently

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