On Tuesday, April 11, 2017, Subrata Mitra who is an investor as well as board member at Flipkart said that the subsidize getting through the latest funding round would be deployed for carving out profits and shredding of consumption on weekly basis. Actually this is added in the strategy that is developed to stride business towards appropriate direction.
Company wants to ride with correct metrics
He added in a statement that, “Every month we are shaving off our burn and that is something that both Binny Bansal and Kalyan Krishnamurthy are looking at on a weekly basis, I presume, which is very important because we want to ride this business towards right metrics”.
Major question for Flipkart’s association with Microsoft, eBay & Tencent
One of the major question emerges with the partnership of Flipkart with Microsoft, eBay, and Tencent that whether Flipkart would still concentrate on collecting profits or not.
Mitra who belongs to Accel partners was reacting on this question, however he did not respond about timeline for this.
Company hopes for significant profits
In fact, one of the Co-founders stated in his recent interviews that company is seeking for remarkable profits in coming 2-3 years and hoping to propel its IPO in next 2-5 years. Difficulties may come in to appearance when Flipkart is looking for a capitalist on board at that point where company’s valuation is low.
Mitra said that of course it was a difficult task but not impossible and could receive immediately.
Loss due to improper execution of plan
The company faced loss during 2015 and 2016 due to lack of proper execution of plan but has recovered since and has gained confidence since the beginning of the year, Mitra added.
Mitra said it very difficult to figure out about the future
Mitra replied to a question that whether people could see a stable leadership going forward for the next few years, “It is very hard to look at the crystal ball and tell you how exactly it is going to play out, but we are expecting a stable leadership, and also think we have got the right combination now with Kalyan (Flipkart CEO) who is superlative in execution”.
He also added in his statement that, “Binny is a great thinker… He is helping us in the strategy side on some of the other initiatives we want to take”.
Unstable nature of Flipkart
Flipkart has been unstable in terms of leadership changes, appointment of Bunny Bansal as new CEO instead of co-founder Sachi Bansal, being one of them. Whether Krishnamurthy had played a significant role in finishing the deal with eBAy?
When this question arose in front of Mitra he cleared with the fact that he surely contributed a vital role in establishing a trust relationship but this result is an outcome of a Team effort and contribution of Tiger Global’s Lee and Binny Bansal cannot be ignored.
On Snapdeal-Flipkart deal, Mitra said, “They are mere speculations… You probably wait and see what happens… I don’t have any further information that I can talk about.”