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Flipkart: Can it Ride out the Fund Crunch?
Abstract
This case discusses the situation faced by the Indian E-commerce marketplace, Flipkart.com, in the wake of funds drying up and the drastic markdown of its valuation by investors. Flipkart’s largest investor, Tiger Global, had set tough targets. Flipkart had therefore tightened its operations to contain losses at a time when the competition was growing with additional investments. Analysts estimated that Flipkart’s cash reserves would last less than a year. Flipkart’s management had to act quickly to restore investor confidence and also maintain its growth momentum as a market leader. |
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Issues
The case is structured to achieve the following teaching objectives:
- Critically analyze Flipkart’s growth and debate whether the funding spree had a significant effect on its strategy.
- Analyze Flipkart’s resource allocation strategy and compare it with the prudent resource allocation strategy for a new business as suggested by Amar Bhide.
- Develop a roadmap for Flipkart to achieve its future growth.
| Contents |
| INTRODUCTION |
| INDIAN E-COMMERCE INDUSTRY – LEAPFROGGING DESPITE CHALLENGES |
| FLIPKART: EARLY DAYS |
| GROWTH |
| MAKING OF A UNICORN |
| THE TIDES TURN |
| EXHIBITS |
Keywords
E-commerce, Funding, Valuation, Business Model, Flipkart, Turnaround, Tiger Global
