Valuation of flipkart, Walmat acquisition of flipkart

1. FLIPKART VALUATION

2.  Flipkart has had a long road over the years, full of ups and
downs. What started as an online bookstore from a two-
bedroom apartment in Koramangala, Bengaluru in 2007 has
today grown into one of the biggest companies in India, and
an incredible example of the success potential for Indian
startups. Founders Sachin Bansal and Binny Bansal (not
related) have become celebrities in their own right, setting
examples for other aspiring entrepreneurs to aim for.
 As Indian e-commerce’s biggest success story celebrates the
crowning moment of its journey so far – a $16 billion
acquisition by Walmart, the world’s largest retailer, in
the biggest M&A deal ever in the Indian startup ecosystem.

3.  2007: Small Beginnings
 2008: Exponential Growth
 2009: A Year Of Firsts
 2010: COD, Ekart Make A Splash
 2011: A Truly Pan-indian Delivery Network
 2012: Going Mobile
 2013: Welcome To The Third-party Marketplace
 2014: Big Billion Day Is Here!
 2015: Brand Refresh
 2016: Milestones, Corporate Reshuffle, And More
 2017: Reaching New Heights And Breaking Glass Ceilings

4.  In May 2014, when Flipkart co-founders Sachin Bansal and
Binny Bansal grandly unveiled the acquisition on stage at a
five-star hotel in Bengaluru by ushering in Myntra founder
Mukesh Bansal.
 Flipkart has had limited success with the apparel and fashion
accessories segment compared to Myntra, which has been
aggressively pursuing the fashion business by bringing
international labels as well as tying up with designers and
launching private brands.
 Flipkart and Myntra together generate more than 50 percent
of the online fashion sales and the companies aim to increase
that number to 60-70 percent over time.

5.  The reason that led Flipkart & Myntra to merge operations
was clear: to combat the threat being posed by foreign online
retail competitors like Amazon and eBay and domestic rivals
like Snapdeal and Jabong as of 2014.
 In July 2016, Myntra moved quickly to buy smaller rival
Jabong in a cut-price deal of $70 million. The acquisition
helped the company consolidate its lead in online fashion
sales. Myntra-Jabong generated $1.2 billion in gross
merchandise value in the last financial year.
 Now, the Flipkart group controls more than 70% of online
fashion sales in the country.

7. A look at the top factors including future cash
flow and various contingent liabilities that
Walmart must have at the top of its mind before
agreeing on the valuation of India’s home grown
ecommerce poster boy.
Cash burn
Flipkart’s penetration in the fashion market
Flipkart’s penetration in the electronics market
Assets
 Digital payment arm - Phonepe