Flipkart, India’s largest e-commerce company is refusing to bow to pressure and launch a public IPO that could raise an extra $5bn for the firm.
The online marketplace, whose main competitors in India are Snapdeal and Amazon, are valued somewhere in the region of $12.5bn.
Going public is something that Flipkart doesn’t see happening in the immediate future, despite local media continuously stating that it will.
For the next three to five years, the e-commerce firm expects to concentrate on increasing its revenue, firstly by doubling the value of its goods to $8bn in the next year.
‘‘I don’t think we’re at a stage in our life cycle that we would want to stand scrutiny on a quarterly basis. Therefore going to the public market is not something that we’re actively considering,’’ said Sanjay Baweja, chief financial officer for Flipkart in an interview with Reuters.
There has already been plenty of foreign investment into Flipkart, despite the e-commerce firm strictly operating in India. Last year Morgan Stanley reported that around $5bn had been invested into the firm, with Softbank Corporation from Japan and the Qatar Investment Authority being two of the biggest investors.
Despite Flipkart’s struggle to turn a profit, the company feel that once India’s smaller towns and cities embrace the digital revolution, the firm will be able to gain more revenue.
‘‘We believe the growth, the next wave of growth will come not from the tier one or tier two… but the real chunky growth will happen from tier 3, 4, 5, 6 cities and towns,’’ continued Baweja.
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