Abstract

This case discusses the situation faced by the Indian E-commerce marketplace, Flipkart.com in the wake of drying up of funds and drastic markdown of its valuation by investors. Flipkart’s largest investor, Tiger Global had set tough targets, Flipkart thus had tightened its operations to contain losses at a time when the competition was growing with additional investments. Analysts had 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.

Learning Objectives

The case is structured to achieve the following Learning 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. ( Refer to the Preparatory Note)
• Develop a roadmap for Flipkart to achieve its future growth.

Keywords

E-commerce, Funding, Valuation, Business Model, Flipkart, Turnaround, Tiger Global