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Indian e-commerce players eyeing profits two years down the line
23 Dec 2013

Some of the prominent e-commerce players in India including SnapDeal, Myntra are hopeful of turning profitable two years down the line, reported The Economic Times.

SnapDeal is eyeing to reach gross sales of Rs. 6,220 by 2014 and begin making profits by 2015. Kunal Bahl, co-founder of SnapDeal said that the online marketplace aims to be the first profitable Indian e-commerce and largest mobile commerce company. In the coming two years Kunal expects three-fourth of total orders on SnapDeal to come from the mobile platform.

Another prominent e-commerce player of India, Myntra expects a turnover of Rs. 800 crore for the fiscal year 2014.

Mukesh Bansal, founder of Myntra, said, “The choice is between sales at any cost or sustainable growth. We have chosen the latter."

Explaining the shift in focus to profits, Ashish Jhalani, founder of eTailing India said, "Most investors today are looking for ventures that have real profitability-based feasibility. They do not anymore want to look at business plans and strategies that have unfeasible timelines for profitability."

Binny Bansal, co-founder of major e-commerce player Flipkart, said, “Our focus right now is still on investing in our growth story.”

As reported by India Digital Review, Flipkart raised $200 million from Naspers, Accel and Tiger Global in July this year, then in October it raised an additional funding worth $160 million from Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital along with existing investor Tiger Global taking its total funding raised to $360 million for this year. This is the largest amount to be ever raised by any Indian internet business. Since 2009, Flipkart has seen investors putting in almost $550 million into the company.

Bansal added, "Currently our business is growing at 100 per cent (annually) and till this growth slows down, we will not be looking at profitability as a factor." The sales target of Flipkart for 2015 is to reach $1 billion, or about Rs. 6,200 crore.

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