Flipkart will not raise additional funds, says Bansal

Co to ramp up investment in K'taka

Sachin Bansal, Co-founder and Executive Chairman of Flipkart, made it clear that the company is not looking at raising any more funds and looks at restructuring the company for finding more revenue streams.

“We are not looking at raising funds. We are well-funded for a long period of time and so we don’t need to look at it. But at the same time, there is a constant effort to improve operational efficiency and growth in all aspects,” said Bansal on Wednesday after meeting Karnataka Industries Minister R V Deshpande.

Flipkart, an eight-year old startup which revolutionised the Indian ecommerce scene and now part of the nine-member Indian Unicorn club, is going through a turbulent period because of the markdown by a few rating agencies.

When asked about it, he said, Uber along with other companies too went through the markdown phase. “Though Uber was marked down by mutual funds, it raised money at a higher valuation than previous rounds. I don’t think much about the markdowns, we should focus on execution and customers, and then things will fall in place,” he said.

Commenting on the gross merchant value growth, Bansal said that the company is looking at growth in all categories and 25% of all mobile phones sold in India are sold online. “As the base grows there will not be slowdown in the category. But at the same time, we should realise that ecommerce is only 2% of shopping in India. We have a long way to go,” added Bansal.

 He said the country is going through internet revolution and Karnataka, especially Bengaluru, is the centre of these happenings. “Flipkart would like to contribute substantially for its development and ramp up our investment in the state. We have about 5,000 people working here and our headcount is growing, and we continue to grow here. We have warehouses in the state.”

On the recent pull back in investment around the globe and economic scenario, he said that these are financial cycles that happen on a regular basis. Bansal said he is enjoying his stint with the company as chairman for the past six months.

“I am very much involved in the day-to-day operations and I am mentoring senior leaders in the firm and creating a positive ecosystem around Flipkart outside and exploring partnerships,” he said.