Flipkart Will Grow With ‘Careful Consideration To Costs’, Says Binny Bansal
Flipkart closed a $1.4 billion funding round earlier in the day.
Flipkart co-Founder Binny Bansal on Monday said while the latest funding round provides the company the fuel it needs to reach its goal of transforming commerce in India through technology, it should continue to grow its business with “careful consideration to costs”.
Bansal said this in an email to his employees after raising $1.4 billion from Tencent Holdings, Microsoft Corp and eBay Inc. "I look forward to your continued support," he added.
The announcement comes in the wake of reports that Flipkart is looking to cut cost by its plan to sack at least 700 employees, or over 3 percent of its workforce, to compete with rivals like Amazon and Snapdeal.
India’s largest e-commerce company has been in the eye of a storm in recent times for shrinking valuations, which prompted them to make several changes in its business model, including raising margins, it charges from sellers.
Bansal said the latest funding round provides solid growth capital so that the company can cement and extend its lead in India's e-commerce market, and its valuation remains healthy and in double-digits, reflective of the current business and global economy.
"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.
Pointing out that the e-commerce space accounts for less than 2 percent of all retail in India and the potential for online retail alone is about $100 billion, Bansal said, "The potential is vast and we have only just scratched the surface.”