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$1 Billion is lot of money in India. Only future will tell what they will build from it.
by hemantv 12y ago
$1 Billion is lot of money in India. Only future will tell what they will build from it.
- epistasis 12y ago$1B is a lot of money in the US too, even for a company's valuation. But to raise $1B is, well, astronomical.
- visakanv 12y agoIndia does have 1.2+ billion people! That must be part of the justification, surely.
- TheIronYuppie 12y agoIndia is a huge opportunity, true. But nearly 30% of Indians live on less than $2/day. I do not believe these are part of that equation.
- pessimizer 12y agoSo 840M that live on more than $2 a day, then. That's around the combined population of the US and Europe.
- adventured 12y agoThe median per capita income in India is around $650. That places them around #100 in the world in that regard. The bottom billion people in India have less disposable income than the five million people living in Norway.
- onedev 12y agoYou are thinking short term.
- adventured 12y agoI recognize India's potential, but my answer was about the near term indeed, a 5 to 10 year window. I personally wouldn't value a company further out than that.
- pessimizer 12y agoWhat about the top 200 million?
- adventured 12y agoMuch like China, the top 100 or 200 million can be a very lucrative consumer market, absolutely.
- train_robber 12y agoYou would also need to put into consideration cost of living. $650 would go a long way in India.
- known 12y agoGDP (USD)...population...per-capita GDP US.......15.68T......313M.....$49,965 UK.........2.44T.......63M.....$38,514 China.....8.23T...1,351M.......$6,091 Nigeria....262b......168M......$1,555 India......1.82T...1,237M......$1,489 https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&idim=country:AUS# https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&...!
- hrjet 12y agoBut then it deals with physical goods; lots of inventory, physical ops, street-level marketing. Is $1B really high for such a company?
- adventured 12y agoYes, very high. Especially if the sales numbers thrown around in this thread are accurate (eg $500m to $1b in sales). Retail companies historically get relatively low valuations (particularly compared to your typical tech company), in part because the margins tend to be very mediocre in retail. A software company would typically have margins 5 to 10 times greater than most retail companies. Amazon has been an anomaly in this regard, while they have the terrible margins, they have been rewarded with a massive valuation.
- caseydurfee 12y agoThey'd already raised over 800M before this round.
- known 12y agoFlipkart is NOT a profit making company as of today.