E-commerce firms may be bleeding because of deep discounts, but Flipkart remains unfazed and will continue to fund discounts to win customers and stay ahead of the competition. It will also invest in back-end operations.
"As Flipkart, and the overall e-commerce industry continue to grow the business, we will continue to pass on discounts to the consumer," the company's co-founder and CEO Sachin Bansal told reporters in Mumbai.E-commerce firms may be bleeding because of deep discounts, but Flipkart remains unfazed and will continue to fund discounts to win customers and stay#
Flipkart, one of India's largest e-commerce players, will focus on customer and seller acquisition as well as heavy investments in back-end operations over the next few years.
Bansal said Flipkart plans to invest more than $1 billion in infrastructure and technology in the next 3-5 years.
Bansal claimed that Flipkart's cost of operations has "significantly come down, to mid-single digits".
He also said that online fashion retailer Myntra, which Flipkart acquired in 2014, has also turned profitable at an operational level, "excluding cost of technology". (SH)
ALCHEMPro News Desk – India
marketing@alchempro.com
