Flipkart is gearing up for its next milestone. The homegrown e-commerce player is eyeing to hit $10 billion GMV in a year’s time, according to a latest report from The Economic Times.
The company is aiming to strengthen its annual gross merchandise value, or GMV, to $10-12 billion (Rs 64,000-76,000 crore) in period of 9 months to a year, said the report. This is an increase from the forecasted $8 billion for the year to March 2016 and more than double the $4 billion it recorded in 2014-15. Flipkart reached $1 billion in annual GMV in 2013-14. The company is confident of doubling its GMV run rate – annual projection based on current GMV – even if sales growth slowed in certain months. Gross merchandise value measures a firm’s growth based on the maximum price of goods and services sold on its platform and not by actual revenue.
Last month, Flipkart was reportedly seeking $550 million in a new funding round that would increase its valuation to $16 billion up from $11 billion in December last year. The report further added that Flipkart is looking forward to expand its catalouge by adding new categories and deal in new areas like homes, travel and groceries by the end of this year. In comparison, Paytm’s GMV surpassed $1.5 billion earlier this month and it is targeting $3-4 billion in the year to March 2016 while Snapdeal GMV recently crossed a run rate of $3.5 billion. Flipkart, which recently revamped its logo, claims to have 26 million registered users, clocking over eight million daily visits. The company competes with the likes of Amazon and Snapdeal who are constantly upping their game in the highly effervescent Indian e-commerce market that is said to be worth $20 billion by the end of this year.