Flipkart’s $20 billion valuation ‘bogus’ for company, says CEO
Flipkarts chief executive Vijay Shekhar Sharma is blaming a “bogie” valuation for the company’s $19 billion valuation, but he said the valuation has not changed and it is not yet a bubble.
“I am sorry that some people may think it is a bubble, but it is really not a bubble,” Sharma said at a seminar on Tuesday.
Flipkars valuation is “not what it should be” according to Sharma.
Flipktals valuation is now “not as high as we thought it was” according Sharma.
The valuation is based on its acquisition of online retailing startup Shopify, Sharma added.
The company is currently valued at $17 billion.
“We will not change our valuation because it is still the valuation that we have,” Sharma told the students, which included former Flipkarna chief Rahul Kapoor and former Flipki chief Anuj Jha.
Sharma said Flipkar has not been in the “bubble” for a long time.
Flipko s valuation is much higher than the value of Shopify and is much more competitive than it was at the start of the year.
“Our valuation is more than Shopify’s valuation, and our valuation is competitive against all the other e-commerce platforms,” Sharma added, suggesting that Flipkarns valuation has come down.
“There is no bubble in Flipkarte.
We have done well.
We are now on a good trajectory.”
Sharma has been at Flipkara since 2015 and has been widely credited for making the company more competitive and making it more attractive to potential investors.
He was the CEO at Flipko, which was bought by Amazon in 2014 for $1.8 billion.