Flipkart has just come out with a statement say that the company has hit $1 bn in Gross Merchandise Value. This is quite a milestone in the history of the 7 year old company. It’s founders Sachin & Binny Bansal said:
Today, we are really proud and excited to announce that we have hit a run rate of $1 billion GMV one year before our target.
The company had said that it will reach the $1 bn target by 2015. At the time, its GMV runrate was $10 mn. “This means that we have grown 100X in the last three years,” said Flipkart.
In June last year when we interviewed Sachin Bansal, he’d said that it the company is likely to clock $500 mn in gross merchandise value in 2013 and was targeting $1 bn in 2015.
In October 2013, Flipkart raised another $160 million to add to its previous round of funding. The company had raised $200 mn in July. In total, it has raised more than half a billion dollars of risk capital as it tries to consolidate its position in India’s online retail market.
It’s closest rival Snapdeal, founded in 2010, is targeting $1 bn in GMV in 2015. The company has raised over $237 mn in funding from eBay and other investors.
If you are really wondering why there are no talks of profitability, here is a good read : Why It Is So Difficult to Build WhatsApp From India.