Unlike a traditional IPO process, this approach is less intrusive with fewer disclosure requirements. It will allow the company to expand its business with the fresh funds, as per GlobalData. The aim of the funds is to help Flipkart continue to invest in technology and business expansion to compete with rivals, GlobalData continues. It has already been on an acquisition spree to diversify its business: in 2020, it acquired augmented reality company Scapic and real-time multiplayer gaming platform Mech Mocha.
The Indian ecommerce market has doubled between 2017 and 2020. The pandemic gave a boost to it, which was already on a growth trajectory. In 2020, the market was worth USD 60.5 billion and it is expected to grow at a CAGR of 16% to be worth USD 111.3 billion in 2024.
Although the Indian ecommerce market is currently dominated by Amazon and Flipkart, the market is about to be disrupted by of Reliance Industries. The integration of Jio Mart in WhatsApp has already created some excitement. In addition, ecommerce startups like Oyo Rooms, Swiggy, Zomato, Ola Cabs, and BigBasket have also intensified competitive pressures.
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