Indian e-commerce giant Flipkart is now planning to focus on increase in the monthly active transacting customers as the key metric, going forward, said Flipkart CEO Kalyan Krishnamurthy. He also called 2017 a year of “revival of confidence in the Indian consumer internet industry” as Flipkart managed to raise about $4 billion from SoftBank, Tencent, eBay and Microsoft which is a validation of its market leadership.
Claims by Amazon India and Flipkart
Flipkart and Amazon India recently claim to be growing faster than each other, but neither of the companies shared any absolute numbers. Flipkart said, in December, it grew at about 85% year-on-year in terms of gross merchandise volume (GMV) in the April-September period that included its flagship festive sales events. Whereas Amazon India said it registered 72% year-on-year growth in terms of gross merchandise sold (GMS) for the September quarter compared with 59% growth in April-June.
Building Grocery Business
According to Krishnamurthy, Flipkart wants to build the grocery business with the right unit economics and profitability. “We are preparing on how to shape customer behavior to buy a bigger basket and also for cost advantage in that category because it is a low average selling price category in India,” said Krishnamurthy.
Looking to Increase Number of Transacting Users
Flipkart is looking forward to increase the number of transacting users on its platform by looking at investments across companies in areas in which it is not present. The company recently held talks with Swiggy, Zomato, BookMyShow and UrbanClap, where its payment arm PhonePe can be leveraged. None of the investment talks have fructified yet.