Putting an end to the speculation for an IPO launch by Flipkart as expected by bankers to raise to raise a record $5 billion, Sanjay Baweja, the chief financial officer of the $11 billion online market place confirmed that the firm would stick to being private for the next three years as per an ET report.
Keeping the current rate of investment intact, the company would have enough monetary support fo the next three to four years. Flipkart’s three-to-five year business plan does not encompass IPO or even an entry into the stock market, he added in the report.
The investments pouring in from Japan's SoftBank Corp, Qatar Investment Authority and other investors have put the e-commerce firms at ease including the the industry’s major player Flipkart, the report said.
The online retail sector in India is undergoing bountiful growth currently due to the inflow of foreign funds and this has proved to be lucrative for Flipkart.
Post raising up to $5 billion, the world’s biggest e-commerce firm is being anticipated to walk the path of Alibaba Group Holding Ltd, by getting listed in New York
Being extravagant on marketing, technology, delivery and also the notable discounts it offers customers, Flipkart is yet to turn a profit, in the likes of competitors like Snapdeal and others, the report stated.
The CFO belies that the actual substantial spurt of growth will be generated from tier 3, 4, 5, 6 cities and towns, saying the company has hinged hopes on the myriad Indians in smaller towns who are unable to get their needs met from local retailers, the report mentioned.