E-commerce business in India is picking up at a great pace and we are yet to see some astonishing turnarounds within this industry, in days to come. Sachin and Binny Bansal of Flipkart can soon take over Infosys Technologies’ Co-Founder N R Narayanan Murthy and Nandan Nilekani in term of their individual net worth.
The Flipkart duo can now boast of a combined net worth in excess of $1 billion after a fresh round of funding raised by them. Flipkart is on its way to becoming the first internet company in India to have a valuation of $100 billion or more.
If you compare Bansals to Murthy family, their net worth (including all the four members) is around Rs. 8,700 crore. On the other hand, Nilekani family holds a net worth of Rs. 6,500 crore.
The Bansals, who raised the $1 billion funding in a single round, will now set their eyes on making their company a $100 billion enterprise in the coming years up from the current $7 billion mark.
At present there are only five internet companies, three US based and two from China, that are valued at over $100 billion. Earlier in the year, it also acquired fashion online portal Myntra. The recent investment will be used to meet the long-term strategic investment requirements.
Flipkart is aggressively looking to invest in the mobile technology in India. The total funding received by this company now amounts to $1.78 billion since 2007. It has more than doubled its worth from $2.6 billion to $7 billion in almost a year.
Flipkart started out in 2007 as an online retailer on book by two IIT –Delhi graduates by pooling Rs 2 Lakh each from the apartment in Koramangala, in Bangalore. It has since then been supported by funding from investors such as the Tiger Global, GIC, Accel Partners and Naspers.It is today the largest online retailer in the country. Its success can be gauged by the fact that it grew from a sales figure of $10 million to an annualized sale of $2 billion from 2011 to 2014.
Bansal duo believes that the coming days would see a boom in the internet space and this is the time to build up for it.Flipkart would also be looking to expand though the inorganic route by means of some strategic acquisitions. The recent acquisition of Myntra hints at this aspect of their growth plan.
Flipkart is currently has a registered user base of over 22 million and it is a 14,000 people strong company. It boasts of about 5 million shipments per month and an average of 4 million hits per day.The Indian e-commerce market, which is currently estimated at about $20 billion, is an industry for the days to come.
Though 70 percent of this market is absorbed by online travel business, it still leaves a big pie for non-travel bases players to expand their horizon and utilize the potential of this rapidly expanding industry.