“We will go for an IPO but I can’t give you a date for that,” Sachin Bansal, Chief Executive Officer of #flipkart said on Saturday. He was responding to a query on when the e-commerce company plans to do an initial public offering.
Bansal, speaking at NextBigWhat’s startup conference UnPluggd, said that for the next year, the company wants to focus on fashion retailing and making its newly launched marketplace a better experience for customers.
“As long as Flipkart is setting the rules of the game, we will be ahead,” said Bansal, whose home grown company is now pitted against international retailing giant Amazon, which recently launched its marketplace in India.
Flipkart, the poster boy of the fledgling Indian e-commerce industry, recently sharpened its focus and shut down businesses that are not core to its operations. Flipkart’s MP3 music service Flyte, was shut down and the company also pulled out of the large appliances category. But when Flipkart develops the capability, it will come back into the large appliance categories in a big way, he added.
“The music CD section gets 1/6th the traffic of MP3s but has 3 times the revenue..so the digital music business wasn’t working,” he said.
In states like Uttar Pradesh, the company also stopped selling goods worth over Rs 10,000. “If the customer experience is not 100% good, we will not do business there. This is something we had decided from the beginning,” he said.
Founded in 2007 by Sachin Bansal and Binny Bansal (not related), Flipkart, now employs more than 4,500 people and has raised nearly $200 million in funds from investors including Tiger Global and South African media conglomerate Naspers. The Indian e-commerce market, pegged roughly at $10 billion in size, is expected to see increasing competition in the coming days with Amazon, Flipkart, Snapdeal and Jabong vying for a larger share.