Flipkart Is Burning Out

Flipkart is burning out

Flipkart, The Billion Dollar Indian E-Retailing Company is Burning out. The company is now valued at $5.5 Billion, Down from its peak of $15.5 Billion. The company reported over $290 Million in net losses and is quickly losing marketshare to its biggest rival – Amazon. Will Flipkart be able to sustain any longer?

With revenues dwindling , investors backing off and top executives leaving the company – Flip kart is in Deep Waters. The Indian E-Retailing model is way different than the global one, Shoppers only go online to get things cheaper than the market price, Due to which all the E-Retailers have to cut the prices and incur losses themselves to make the customer habitual of shopping online. While Amazon has deep pockets to fund all this, Flip kart is merely a startup which is solely relying on VC’s funds to support them and fight the gigantic and aggressive strategies of Amazon.

Amazon is not the only one that threatens Flipkart, Its very own domestic rival ‘Snapdeal’ is also trying to raise capital and has crossed it in terms of valuation (SnapDeal is worth $6.5 Billion) thanks to Softbank’s latest round of $500 Million. Gaining marketshare for SnapDeal wouldn’t be a hefty job as investors are lining up for SnapDeal. 

Furthermore, Flip kart is hugely criticised for its lack of customer concern and being solely money minded. It was recently rated as the worst E-Retailing Company Of India in terms of customer satisfaction. A popular Thread on Quora.com also has 90% negative responses towards Flipkart when the question was asked whether Flip kart is better than Amazon.

To Conclude it all, I would like to say that if Flipkart wants to sustain itself in the market, It needs to show customers its differentiating factor. Why should they buy from Flipkart and not Amazon? Flipkart’s current strategy is largely based on customer attraction, while Amazon’s strategy is largely based on Customer retention, And THAT I think… Has made all the difference.


What are your views about the recent dwindling of Flipkart? Let us know in the comments down below.

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