E-Commerce giant Flipkart’s co-founder Binny Bansal said that while the most recent funding round offer the fuel the company needs to achieve its aim of transforming commerce in India throughout technology, it should continue to grow its business with cautious kindness to costs.
"I must stress that we still have some distance to go before fulfilling our mission - to transform commerce in India through technology. And, while this funding round provides the fuel we need need to reach that goal, we have to continue growing our business with careful considerations to costs," he said in a mail shot-off to his employees after raising $1.4 billion from Tencent Holdings, Microsoft and eBay. "I look forward to your continued support," he added.
The recent announcement of funding came in the stir of Flipkart, being in the eye of a hurricane in recent times for lowering of valuation, which encouraged them to make several changes in its business model, including raising margins, it charges from sellers. Well, a host of Flipkart's investors made valuation which estimates by up to 39% in the recent past. At its crest, Flipkart was valued at over $15 billion (roughly Rs 1,00,830 crore).
Citing the reasons for the consequence of the latest funding, Binny mentions that it is the chief in the company's 10-year history and also in India's internet sector. While, Bansal also said that it offers solid expansion capital so that the company can strengthen and widen its lead in India's e-commerce market.
"I am particularly excited from the strong confidence global tech giants have shown in our abilities. It is just an acknowledgement of the strides we have taken in improving people's lives, it is also an endorsement of the opportunities ahead," he said.
Bansal also goes on adding that the deals that the company has struck are significant for them as e-commerce space accounts for less than two per cent of all retail in India and the latent for online retail alone is about $100 billion.
"As I have said before, the potential is vast and we have only just scratched the surface. E-commerce accounts for less than two per cent of all retail in India and the potential for online retail alone is about $100 billion. Which is why these deals are particularly important for all of us," he said.
"Tencent, one of the largest internet companies in the world, and Microsoft also join us as strategic investors," he added.